New KCC to purchase 65,000 litres of milk daily

KENYA – The New Kenya Co-operative Creameries (New KCC) has agreed to purchase 65,000 litres of milk daily from the Kirima Dairy Co-operative Society in Kirinyaga County.

The decision was made following discussions between cooperative representatives and New KCC officials. An agreement was reached to increase the daily collection to 65,000 litres, ensuring that most of the farmers’ milk will now be collected and processed.

Previously, New KCC had been purchasing 45,000 litres daily, but a reduction to 25,000 litres exacerbated the crisis, leaving farmers with unsold milk and financial strain.

This news brings a sigh of relief to the society that serves over 6,000 dairy farmers, averting losses that farmers have incurred over the past few weeks.

For days, more than 6,000 farmers affiliated with the cooperative faced challenges as milk collection slowed down, forcing some to pour away their produce due to a lack of storage and buyers.

“We have agreed that from today, they shall be taking on the minimum 65,000 litres daily to address the backlog that was there because of the storage capacity capabilities of our cooler equipment,” said Kirinyaga CEC Member for Cooperatives and Trade, Calbert Njeru.

The CEC assured the farmers that, based on the agreed-upon terms, all challenges will be addressed as the county government continues with the other logistical operations and paperwork necessary to prevent future milk wastage.

In addition to securing a reliable market, the cooperative is exploring plans to establish its own processing plant, which will enhance value addition and diversify its market reach. This initiative aims to prevent future disruptions and strengthen the region’s dairy industry.

New KCC restructures under new reforms

Last year, the Kenyan government reiterated its commitment to clearing all debts owed to dairy farmers by New Kenya Cooperative Creameries (KCC), marking a shit with the timely payment of October 2024 dues. 

For the first time, farmers received their payments on the 1st of the month, a move hailed by Cooperatives and MSME Development Cabinet Secretary Wycliffe Oparanya as a critical step in empowering local dairy producers.

Addressing a group of farmers at the New KCC factory in Dandora, Oparanya emphasised the vital role that dairy farming plays in supporting rural livelihoods and driving economic empowerment. 

The CS also revealed that New KCC is undergoing restructuring under the Bottom-Up Economic Transformation Agenda (BETA). This includes a review of its human capital to align with market demands and increase competitiveness. 

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