CS Oparanya gives New KCC 90-Day deadline to present restructuring report

Cabinet Secretary for Cooperatives and MSMEs, Wycliffe Oparanya has issued a 90-day ultimatum to the New Kenya Co-operatives Creameries (KCC) to present a progress report on its restructuring efforts.

This directive comes amid increasing demands for improved benefit payments to farmers.

During a visit to the KCC factory in Dandora, Nairobi on Wednesday, Oparanya pointed out that no additional capital would be allocated until the KCC can demonstrate its ability to sustain operations.

"For the sector to achieve its revitalisation agenda, New KCC must restructure its human capital. The current level of productivity does not match the competition in the market," he stated.

Principal Secretary for Cooperatives, Patrick Kilemi, echoed Oparanya's concerns, pointing out that despite having state-of-the-art equipment, KCC struggles to generate sufficient revenue and often neglects the interests of farmers.

"We cannot keep doing the same thing and expect different results. The reform process at KCC is on track, and we must implement it for the benefit of the farmers, who are the backbone of this institution," Kilemi said.

Ongoing reforms

Assuring farmers of ongoing reforms, CS Oparanya stated that efforts are already underway to enhance productivity.

He highlighted the adoption of a "pay farmers first" principle, ensuring that farmers receive timely payments on the first of each month.

"This is a clear sign that our reforms are gaining momentum," the CS noted.

Oparanya also encouraged farmers to take advantage of credit facilities offered through their cooperatives, which can cover up to 70 per cent of the cost of essential equipment.

Farmers only need to fund the remaining 30 per cent, either individually or as a group.

Currently, KCC processes milk sourced primarily from cooperatives, which supply 85 per cent of the total, with small-scale farmers contributing 10 per cent and large-scale farmers 5 per cent.

Oparanya stated that the anticipated reforms aim to expand the dairy market share and meet both local and export demands.

"New KCC is a strategic government corporation, and we must guard its operations to remain productive in such a highly competitive and fast-evolving market," he said.