Cooperatives and MSMEs Cabinet Secretary (CS) Wycliffe Oparanya on Tuesday gave the New Kenya Co-operatives Creameries (KCC) a 90-day ultimatum to present the restructuring progress report or else no more capital will be released to the company.
Speaking at the new KCC in Dandora, Oparanya said that this bold move is a measure to ensure that the new KCC is able to sustain its operations.
“For the sector to achieve its revitalisation agenda, New KCC must restructure its human capital. The current level of productivity does not match the competition in the market,” Oparanya stated.
His Principal Secretary for Cooperatives Patrick Kilema echoed these concerns saying, “We cannot keep doing the same thing and expect different results. The reform process at KCC is on track, and we must implement it for the benefit of the farmers, who are the backbone of this institution.”
Kilema also expressed major concerns about the new KCC failing to produce sufficient revenue and prioritising the needs of the farmers despite having state-of-the-art equipment that could help them seamlessly carry out their activities.
However, while speaking to a section of the farmers, the CS assured them that he would see to it that the reforms, which he confirmed had already kicked off, would be completed in a timely fashion and they would start enjoying their fruits soon.
Meanwhile, he told the farmers they could access credit and enjoy up to 70% financing on essential equipment and only have to fund the remainder 30% on their own.
He further assured them that the main focus of the new reform will be putting the farmer first in a bid to enhance the dairy value chain through cooperatives. He stated that all their dues would be paid on the first of every month.
“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 every month. This is a clear sign that our reforms are gaining momentum,” Oparanya said.
85% of the milk processed at the new KCC currently comes from cooperatives while 10% is supplied by small-scale factories and the remaining 5% from large-scale factories.
The anticipated reforms for the new KCC are expected to expand the market share of the dairy industry and meet local market demands for local consumption as well as for export.
“New KCC is a strategic government cooperation which we must guard its operations process to remain productive in such a highly competitive and fast-evolving market,” Oparanya stated.
