Joseph Choge takes helm at New KCC amid financial turmoil

KENYA – New Kenya Cooperative Creameries (New KCC) has appointed Joseph Choge as its new Managing Director, ushering in a leadership transition at one of Kenya’s largest state-owned dairy processors.

In an interview, Choge acknowledged the scale of the challenge ahead, citing the need to stabilize operations, revamp infrastructure, and steer the company toward profitability.

“I want to familiarise myself with what is going on in the company and come up with a plan on how to revamp the firm, but all these require time,” he said.

New KCC currently owes farmers and suppliers over KSh 300 million, including more than KSh 184 million in delayed payments to dairy farmers.

The Kenya Dairy Farmers Federation (KDFF) has raised an alarm over the backlog, warning that delayed payments have discouraged milk deliveries despite New KCC offering higher farm-gate prices than private processors.

Farmer cooperatives in the North Rift region have threatened to withdraw from the processor unless urgent reforms are undertaken. Many cite difficulties in servicing loans, purchasing animal feed, and meeting household needs due to unpaid dues.

Stakeholders are calling on the government to inject fresh capital into New KCC, accelerate disbursement under the milk stabilization programme, and allow farmers greater participation in pricing and payment decisions.

Choge’s appointment comes amid broader efforts to modernize New KCC and prepare it for potential privatization.

As the company navigates this critical juncture, farmer confidence and financial discipline will be key to restoring its reputation and competitiveness in Kenya’s dairy sector.

New KCC urged to halt milk supply to government agencies over unpaid debts

In 2024, New KCC was instructed to immediately cease supplying milk to government agencies that have failed to settle their outstanding debts.

This directive was issued by the National Assembly’s Committee on Trade, Industry, and Cooperatives, which expressed concern over the negative impact these debts have had on New KCC’s operations.

Committee Chairperson James Gakuya emphasised that New KCC, being a business entity, should not be compelled to continue providing milk to agencies that have not cleared their dues, as this affects the company’s ability to fulfil its financial obligations, including paying farmers.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE