Compounding these issues, New KCC is also liable for Sh204 million it owes former employees who were laid off in 1997.

Oparanya warned that no additional capital would be allocated until the KCC can demonstrate its ability to sustain operations.

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

Plans are underway to establish a Sh3 billion milk price-stabilising fund, implemented by the New KCC.