Dairy farmers receive timely October payments as New KCC reforms take effect

Rop Janet- KNA

The Government is committed to clearing all debts owed to dairy farmers by the New Kenya Cooperative Creameries (KCC).

Cooperatives and MSME Development Cabinet Secretary Wycliffe Oparanya revealed that for the first time, dairy farmers were paid their October 2024 dues on time.

Addressing a section of dairy farmers from various cooperatives at the New KCC factory in Dandora, Oparanya emphasized the pivotal role played by dairy farming in empowering local communities and enhancing rural livelihoods.

The CS revealed that reforms are on course at the New KCC in a bid to empower dairy farmers to increase milk productivity, thus transforming the dairy industry to process milk for local consumption and export.

“Our focus is on enhancing the dairy value chain through cooperatives. We have adopted the 'pay farmers first' principle, resulting in timely payments on the 1st of the month, this is a clear sign that our reforms are gaining momentum,” he said.

Oparanya noted that the New KCC is a strategic government corporation, and its operations must be guarded to ensure it remains productive in a highly competitive and fast evolving market. 

The CS revealed that he had held a meeting with the New KCC management led by Acting MD Samuel Ichura, to discuss the company's performance progress under the Bottom-up Economic Transformation Agenda (BETA).

He noted that to achieve the revitalization agenda for New KCC Kenya, the organization must restructure its human capital, as market competition cannot align with current productivity levels.

On his part, Principal Secretary for Cooperatives Patrick Kilemi said the New KCC is well placed in terms of state-of-the-art equipment and facilities, yet it has always struggled to generate its own revenue and take care of the farmer's interest. 

He reiterated the need for an urgent restructuring of human capital to bring more vibrancy and cut the cost of operations. 

"We cannot keep doing the same thing over and over again and expect different results. The process to reform KCC is on course and we must do it for the interest of the farmer who is the main pillar of the institution's existence," the PS said.  

He also warned the management to remunerate themselves first before paying farmers, maintaining that the company exists because of the farmers who struggle to deliver their milk to KCC.

"As government employees we need to provide proper leadership in the market for the benefit of our farmers," Kilemi added.

Kajiado Dairy Women Co-operatives chairperson, Miriam Busiati commended the Cabinet Secretary for delivering on the promise of ensuring that farmers are paid for their milk supply promptly.

"For the first time after a very long time of waiting we have regained our confidence in the New KCC after we got our monies within a record time on the 1st of the month this October," the chair said.

 She noted that Kajiado Women's Dairy has over 3,400 members and called on the government to provide mobile coolers to continue production even during the dry season when their cows are relocated and transferred elsewhere in search of pastures.

"Mobile coolers will enable us to have a consistent supply and earn revenue to sustain our livelihoods. Women have been empowered at the family and community level through sale of milk," she said.