Government boost for New KCC modernization
The government has set aside close to a billion shillings to modernize the New KCC as part of plans to make it a strategic milk processor.
According to the ministry of agriculture Sh500 million has been set aside to pay off farmers debt while a further Sh300 million will be used to modernize equipment used by the processor.
Co-operative Development Principal Secretary Ali Noor Ismail says the funding is crucial in speeding up new KCC’s reforms with the hopes of improving dairy farmer’s earnings.
“In the current budget there’s a figure of Sh500 million for debt and Sh300 million for modernization,” Mr Ismail said.
Last month a milk boiler at the Nyahururu plant exploded injuring eight workers on account of using aging machinery.
Following the incident, milk deliveries was diverted to other New KCC factories to ensure that farmers do not incur huge losses as a result but the PS assured that the factories will be back I its operation by this Sunday.
New KCC Managing Director Nixon Sigey said the company has to increase its capacity to effectively compete in the industry and offer farmer competitive prices for milk delivery.
“We believe in the next one year, the production of milk at the farm level will be going up and we as a processor are preparing for that increase by modernizing by ensuring we have enough capacity,” Mr Sigei said.
New KCC, in collaboration with the national government, is expected to provide milk coolers to milk cooperative societies in milk producing Counties beginning the end of this year.
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