KCC removed from list of key parastatals to be sold by government

The Cabinet Secretary for Cooperatives and MSMEs Development Simon Chelugui has denied reports indicating that the New Kenya Co-operative Creameries Limited (NKCC) is among 11 government entities up for privatisation.

CS Chelugui say the dairy processor is being strengthened by the government instead.

Chelugui revealed this is because it offers a lifeline for a majority of Kenyan farmers, especially as a buyer of last resort.

“On March 29, 2019, the Cabinet resolved to remove the New KCC from the privatization programme. That resolution still stands and it can only be reversed by a similar Cabinet resolution,” the CS stated.

CS Ministry of Cooperatives Hon.Simon Chelugui EGH, Embu Governor Cecily Mbarire, New KCC Chairman Mr. David Maina and Managing Director, Mr. Nixon Sigey, EBS, among other dignitaries on a visit to New KCC Runyenjes milk cooling plant. [photo:New KCC/X]

“On the issue of privatization, Chair, CEO and the board of management unless another cabinet memo is brought, as far as cabinet is concerned that is the position,” He assured the leadership of the dairy processor in a meeting Thursday evening in Naivasha.

“I am not saying privatization is bad, but we want to complete the establishment and position KCC strategically and then offer it to the market,” he said.

The Commissioning of a modernized New KCC Kiganjo factory, a significant accomplishment for the New KCC.[Photo:New KCC/X]

The Cabinet Secretary also mentioned that if and when the government will want to sell the Corporative the first people to be approached will be farmers.

“You see, we have given you Ksh. 500 million and we have set the price of milk at Ksh.45. Others are at Ksh.33. Those are private agencies who ask farmers to take it or leave it. As government, we cannot do that because we are conscious of the cost of production,” he added.

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