Simon Chelugui: New KCC To Buy Milk At KSh 45 Per Litre, We Have Secured Middle East Market

• Initially, the government allocated KSh 1.5 billion to purchase excess milk from dairy farmers
• Treasury released a part of the allocation, KSh 500,00, to be distributed to New KCC centres to stabilise the prices of milk
• Highlighting the government's efforts, the CS stated that the government has secured market in the Middle East for Kenyan milk

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing profound insights into both Kenyan and global economic trends.

The government of Kenya allocated KSh 1.5 billion to New Kenya Cooperatives Creameries (KCC) to help stabilise milk prices and protect farmers from poor earnings.

Addressing a church function in Nandi county over the weekend, Cabinet Secretary for Cooperatives and Micro, Small, and Medium-sized Enterprises (MSMEs), Simon Chelugui, announced that the New KCC will purchase milk directly from farmers at a minimum rate of KSh 45 per litre to cushion them from exploitation by middlemen and other stakeholders in the sector.

KSh 500 million released to New KCC centres

According to a report by the Standard on the church function in Nandi, Chelugui announced that his ministry would release KSh 500 million to New KCC collection centres nationwide by the end of December, urging farmers to continue delivering their milk to the centres.

"We seek to protect dairy farming like any other businesses in the country. The minimum price of buying milk is fair and enables farmers to earn good returns despite the high cost of operation," Chelugui said.

Treasury released the money to the Ministry

Chelugui's remarks during the event comes after the Treasury disbursed an initial capital of KSh 500 million to the New New KCC to facilitate the absorption of excess milk in the market as part of the KSh1.5 billion requested by the Ministry from the exchequer.

CS Simon Chelugui, who is responsible for Co-operatives and MSMEs development confirmed the disbursement for the New KCC to initiate the procurement of surplus milk.

Middlemen in the market

The CS recognised the presence of Unscrupulous traders in the milk market, who have caused the downfall of the dairy sector, prompting many to abandon farming, resulting in a significant drop in milk production.

Middle East market

CS Chelugui mentioned deliberate efforts by the county and national governments to boost milk production, and secure markets locally and internationally, stating that the government has secured market for Kenyan milk in the Middle East.

The CS also promised the construction of additional cooling facilities in Nandi, Baringo, Kericho, and Runyenjes.

Government denies plan to privatise New KCC

In other news related to New KCC, CS Simon Chelugui dismissed claims that the New KCC is among the government entities up for privatisation.

The CS asserted that on March 29, 2019, a cabinet resolved to remove KCC from the privatisation list and that only the same cabinet can reverse its resolution.

“On privatisation, Chair, CEO, and the board of management unless another cabinet memo is brought, as far as cabinet is concerned, that is the position. As a government, we cannot do that because we are conscious of the cost of production,” the CS said assuredly.