In a decisive move to enhance dairy productivity, Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya has issued a 90-day ultimatum for the New Kenya Co-operative Creameries (New KCC) to submit a report on its restructuring process.

This initiative seeks to align the government-owned institution with modern market demands.

Addressing dairy farmers from various cooperatives at the New KCC factory in Dandora, Oparanya revealed that farmers can now access state credit facilities of up to 70 per cent, with the farmers responsible for the remaining 30 per cent.

He stressed the significance of dairy farming in empowering local communities and enhancing rural livelihoods, stating, “As a ministry, we are urging farmers to take advantage of affordable state credit facilities, and apply for funding through their cooperatives of up to 70 percent, and 30 percent to be catered by them as groups or individuals.”

The CS highlighted that reforms at New KCC are aimed at increasing milk productivity among dairy farmers.

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He indicated that these changes will transform the dairy industry to cater not only to local consumption but also to export initiatives.

“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 noted.

During a meeting with New KCC's management team, led by Acting Managing Director Samuel Ichura, Oparanya made it clear that there would be no capital allocation from the government until the institution demonstrates recovery and sustainability in its operations over the next 90 days.

He underscored the necessity of restructuring human capital within the sector, remarking, “The New KCC is a strategic Government corporation which we must guard its operations process to remain productive in such a highly competitive and fast-evolving market.”

With these initiatives, the government aims to bolster the dairy industry's performance and ensure the long-term sustainability of New KCC amid increasing market competition.