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New KCC eyes revenue boost from Sh14 milk packets
New KCC is seeking to increase production of its 100ml milk. PHOTO | FILE
The New Kenya Co-operative Creameries (New KCC) is set to install a Sh70 million processing line in Nyahururu for the production of the 100ml milk packets commonly called Kabambe.
The processor is targeting to grow Kabambe’s revenue contribution from the current five per cent of its total income to 15 per cent.
The new line is expected to start operations in August. Kabambe was launched last year and sells for Sh14, compared to the common 500ml packet that goes for about Sh52.
The Kabambe, which is a long life product targets the low-end market, especially the urban poor who cannot afford the 500 ml packets.
New KCC has been processing the milk at its Nyahururu-based factory, alongside other products.
“We will be establishing a dedicated line for the Kabambe given the fact that the product has become popular though we have never had a dedicated line for it,” said the New KCC managing director Nixon Sigey in an interview.
Mr Sigey said Kabambe has been sharing the same production line with the Ultra Heated Treatment (UHT) milk in Nyahururu.
The MD said the volume for the raw milk intake has grown by 10 per cent and the firm is banking on modernisation to accommodate increased supplies from farmers. At the moment, the firm has a daily capacity of 700,000 litres.
“We have been experiencing increased volumes from farmers in recent days and we need to modernise our plants in order to absorb all supplies that they bring in,” he said.
The State-owned firm is also set to expand the Eldoret plant by installing a Sh70 million line for the production of the UHT milk in August.
