The National Government, through Cooperatives Cabinet Secretary Simon Chelugui, on Friday, retracted an earlier directive to privatise the New Kenya Cooperative Creameries (KCC).
In a statement, the CS stated that President William Ruto's administration would not sell KCC despite a Monday, November 27, order listing the company among 11 parastatals to be privatised.
"I want to state as follows. On March 22, 2019, the Cabinet resolved to remove KCC from privatisation. That position stands and can only be reversed by a similar Cabinet resolution," Chelugui stated.
According to the CS, KCC is crucial in the dairy sector, which acts as the last resort buyer of milk from Kenyan farmers.
Additionally, Chelugui noted that the cabinet would not allow the privatisation of KCC as it was used to launch the government's interventions in the dairy sector.
CS Chelugui further revealed that in 2019, former President Uhuru's Cabinet had been warned of privatising KCC, for it plays a key role in milk stabilisation.
"You have seen we have given you (dairy farmers) Ksh500 and that we have set the price at Ksh45. Others are now at Ksh33. Those are private agencies. It is take it or leave it from them," Chelugui stated how the government was regulating prices.
"As a government, we cannot do that because we are conscious of the cost of production."
Chelugui promised to write to the National Treasury CS Njuguna Ndung'u to strike out New KCC from the list of parastatals to be privatised.
"I am not saying privatisation is bad, but we want to complete the establishment and position KCC strategically and then offer it to the market," he added.
Chelugui remarked that should the government decide to sell KCC in future, farmers would be given the first priority in buying the parastatal.
Other companies that are penned to be sold include Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited.
The Njuguna-led ministry also earmarked Kenya Pipeline Company, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex for sale.
