This archive report was first published on 10 July 2019.
On July 10, 2019, the New KCC Kiganjo factory in Nyeri County received new milk processing equipment worth 150 million shillings as part of the government's modernization process of its factories countrywide.
The modernization programme, which started three years ago, has seen Sh. 1 billion spent so far, according to Nixon Sigey, the New KCC Managing Director.
The programme has enhanced the production capacity of the factories, with farmers' earnings shooting up from Sh. 2.5 billion to Sh. 4.5 billion in just one year.
By the time the modernization process is complete, farmers' payout is expected to hit Sh. 6 billion annually, Sigey said.
The factory has the capacity to handle all the milk produced by farmers and do value addition using state-of-the-art equipment, Sigey assured.
He called on the youth to take up dairy farming as a business venture to better their lives.
MP Kanini Kega, the Parliamentary committee chairperson for Trade and Industrialization, urged the government to reduce the cost of electricity, which accounts for 50 per cent of production cost.
He also pushed for the processor to be allocated Sh. 500 million for the inclusion of milk in the national food strategic reserve, alongside other foodstuffs such as maize, rice, and beans.
This, he said, would curb wastage whenever there is a glut, thus cushioning farmers from bearing the brunt of such an unforeseen happening.
“In the event of a milk glut, we want all the excess milk converted into powder to form part of the national food strategic reserve,” Kega said.
