Govt. shelves New KCC privatization plans

The government has put on ice plans to sell milk processor New KCC despite a push by the Privatization Commission to conclude the deal, close to five years in the making.

According to President Uhuru Kenyatta, the government has released Sh500 million to offset money owed by the dairy company to farmers, adding there was no immediate need to sell the milk processor.

“The government has set aside Sh500 million to put in KCC to ensure the debt KCC had with the farmers is settled. The list of beneficiaries is already out,” President Kenyatta said.

The money is expected to be settled by the end of January 2017.

The government was reacting to claims being made by politicians that New KCC had already been sold and that farmers would lack a buyer for their milk.

According to the Privatization Commission the approval to privatize the milk proposal was rests with the National Treasury.

The hasty retreat comes at a time New KCC is dire need of fresh capital to revive its operations.

The government had initially planned to sell a 90 percent stake in the milk processor.

New KCC, the oldest formal milk processor, is only one of the state owned firms lined up for privatization.

The firm has been of interest to political brokers who at one point attempted to privatize for their own interest.

President Kenyatta made the remarks during his tour of Nandi County.