Gov’t to pay milk farmers Ksh 550M in debt

The government will now pay milk farmers from the South Rift regions Ksh 550 million in debts accumulated for a period of 20 years.

New Kenya Co-operative Creameries LTD (KCC) Managing Director Nickson Sigei, during his visit to Sotik Milk Factory in Bomet County, said that the new KCC will upgrade all its factories in the country to accommodate the huge supply of milk from all the regions.

He further said that the government had allocated Ksh 400 million to expand the Eldoret factory and an extra Ksh 200 million for the Sotik factory.

Sigei, on the other hand, urged milk farmers to work together so as to benefit all.

The new Managing Director said KCC was working hand-in-hand with the County and National governments to ensure that there are enough coolers for the storage of the surplus milk.

He, however, said that milk farmers will first be educated on the benefits of using the coolers so as that they are able to export quality milk to different markets around.

Sigei applauded dairy farmers for embracing the use of Artificial Insemination (AI) services to better their production.

This breakthrough, however, comes after issues were raised concerning the privatization of the milk company.

The farmers had rejected a government plan to privatize the company but instead wanted it (the company), once ran as a farmer’s dairy co-operative, reverted back to them.

“The company belongs to the farmers and the state should hand it over to them within the next six month,” said Uasin Gishu Deputy Governor Daniel Chemno.

In the recent past, farmers in Rift Valley had asked the government to write off the Ksh 500 million debts at the New KCC.

CORD leader Raila Odinga and other MPs had supported the farmers’ demands to have the debt forgiven.