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Originally published by Nation Businessbusiness
January 29, 2026
12h ago
Government, dairy farmers clash over plan to spilt New KCC
Farmers warn that the process will fragment the supply chain and expose them to exploitation by private processors...
✨ Key Highlights
The Kenyan government and dairy farmers are in conflict over plans to decentralize the operations of the New Kenya Cooperative Creameries (New KCC). While the government, led by President William Ruto, believes this is necessary to revive the financially troubled processor, farmers fear it will fragment the supply chain and expose them to exploitation.
- President William Ruto plans to split the New KCC to empower farmers to own factories in their regions, similar to the Kenya Tea Development Agency (KTDA) model.
- The government has injected Sh2 billion into the New KCC for debt settlement and reforms, stating this will be the final payment.
- Farmers, like director of the Kenya Farmers Association (KFA) Kipkorir Menjo, assert their ownership of New KCC and demand involvement in decision-making.
- In 2023, North Rift dairy farmers earned Sh918 million from milk deliveries to Brookside Dairies, a 27 percent increase over 2022.
- The Kenya Dairy Board (KDB) aims to increase national milk production from 5.2 billion to 10 billion litres annually.
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