New KCC requests state for US$23M to implement milk powder reserve fund

KENYA – The New Kenya Cooperative Creameries (NKCC) has asked the Kenyan parliament to allocate KES3 billion (US$23.9M) for the implementation of a milk powder reserve fund for the stabilization of prices during glut and deficit.

New KCC is state-owned milk processor engaged in the processing and marketing of milk and milk products in the country.

The company is one of the largest dairy processors in the country and has a range of dairy products including milk, yoghurt, butter, cheese, ghee and cream milk powder.

NKCC said the Strategic Milk Powder Fund was established in law in 2016 and will be used for mopping up excess milk when there is glut, converting excess into milk powder and for release into the market when there is a shortage.

The company further communicated to the National Assembly’s Trade, Industry and Cooperatives that it would need KES500 million as initial seed capital to complete the modernization and upgrade of milk processing equipment.

The government had recently spent KES 2 billion to modernize some of the New Kenya Cooperative Creameries factories in seven counties to build capacity for dairy farmers.

The factories situated in Uasin Gishu, Bomet, Nyahururu, Nyeri, Trans Nzoia, Meru and Mombasa have been revamped to build capacity for dairy farmers.