Ruto promises Sh1 billion to New KCC after state's huge debts were revealed

President William Ruto on Saturday said his administration will now give Sh1 billion to New Kenya Cooperative Creameries after reports emerged that state cooperations, including State House, owe up to Sh184 million to state the milk processor.

Ruto said the cooperative creameries will get a boost in the market for dairy farming in the country. The Head of State said the money will also stabilise milk prices for farmers in the country.

He directed New KCC to immediately review milk prices and buy from local farmers at Sh53 per litre.

According to Ruto, the money issued would strengthen the sector and assist boost the capacity of dairy farmers to increase production.

Ruto was speaking at Kobujoi market in Aldai Constituency after launching a Sh300 million last-mile project and inspecting the ongoing construction of a modern market in the area.

Our country’s economy grows when homesteads and businesses access reliable and affordable electricity. That is our Plan for our villages across the country.

In Cheptigit, Nandi County, launched the Last Mile Connectivity at the Aldai Dairy Cooperative Factory.

Also inspected… pic.twitter.com/BEcgzH2ljz

— William Samoei Ruto, PhD (@WilliamsRuto) August 24, 2024

He explained that there was a milk shortage in the country, therefore the need for the government plan to support farmers to increase their production.

"As from September, the farmers supplying milk to all KCC centres will be paid Sh50 per litre and the extra Sh3 will be remitted to cooperatives and SACCOS and also take care of transportation costs," he said.

To make local farmers realise more profits, Ruto added that his administration is now regulating the importation of powder milk which has been affecting production by local farmers.

His promise to farmers on milk production comes days after Members of Parliament have called KCC to stop supplying milk to government agencies that have failed to settle their debts.

New KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary Patrick Kilemi on Thursday appeared before the National Assembly Committee on Trade, Industry and Cooperatives Committee seeking answers on delayed payments to dairy and coffee farmers. He revealed that state agencies owe the creameries up to Sh284 million in unpaid debts.