CS Chelugui removes KCC from list of state firms to be sold

Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui has now said the new Kenya Cooperative Creameries (KCC) from the list of parastatals to be sold by the government.

Earlier this week, the National Treasury unveiled a list of 11 state companies which included the new KCC set to be privatised under the 2023 Privatisation Programme in accordance with the Privatisation Act 2023.

"On March 29, 2019, the cabinet resolved to remove KCC from the privatisation programme. That resolution stands and it can only be reversed by a similar cabinet resolution," Chelugui said on Thursday during a dairy stakeholder meeting in Naivasha.

The CS said the dairy processor is being strengthened by the government because it offers a lifeline for a majority of Kenyan farmers, especially as a buyer of last resort.

The CS said he will now write to the Treasury CS on the issue of the 2019 cabinet resolution.

"I will indicate in the letter to Treasury, the reasons why the cabinet of the time thought KCC does not fit into the privatization programme," Chelugui said.

“On the issue of privatization, Chair, CEO and the board of management of KCC unless another cabinet memo is brought, as far as the cabinet is concerned that is the position."

Chelugui said in the event they would sell KCC, their first offer would be to the farmers through their respective cooperative societies.

“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.

In the privatisation programme released by the Treasury, the ministry cited "No further reliance on National Exchequer for recurrent or capital grants," as one of the criteria used to privatise the firm.

The other state companies earmarked for privatisation include;

1. Kenya Literature Bureau
2. National Oil Corporation of Kenya
3. Kenya Seed Company Limited
4. Kenyatta International Convention Centre
5. Mwea Rice Mills Ltd
6. Western Kenya Rice Mills Ltd
7. Kenya Pipeline Company Limited
8. Numerical Machining Complex Limited
9. Vehicle Manufacturers Limited
10. Rivatex East Africa Limited