New KCC vets dairy farmers ahead of settling Moi-era debts

A worker at the New KCC Kiganjo factory in Nyeri. FILE PHOTO | NMG
A worker at the New KCC Kiganjo factory in Nyeri. FILE PHOTO | NMG 

New Kenya Co-operative Creameries (New KCC) has started the third phase of verifying documents ahead of paying thousands of farmers owed millions of shillings from the Moi era.

The Treasury has released the money ahead of the vetting of more than 100,000 farmers who supplied the processor milk the 1990s.

New KCC chief executive Nixon Sigey said yesterday the company had paid the farmers nearly Sh400 million out of the Sh500 million owed to the farmers in the first and second phases.

The debt has been pending due to the slow verification of genuine farmers who delivered milk to the old KCC before it collapsed due to financial mismanagement in 1999.

However, Mr Sigey said some of the farmers had not provided the firm with documents to enable it clear the debt.


“The government has opened yet another window to the farmers to be considered for the third phase of the payment and I urge those who have documents to visit our factories where they delivered the milk for verification,” he said.

Mr Sigey said the exercise is set to be completed by the end of this month.

He urged the affected farmers to visit the plants for their documents to be verified.

Mr Sigey said the government through New KCC was keen in supporting dairy farmers.

“Dairy is part of President Uhuru Kenyatta’s Big Four agenda as far as food security is concerned and New KCC is ready to support this critical pillar by the government,” he said.

Mr Sigey also said the modernisation of the firm’s factories was in top gear in readiness for the increased milk supplies by the farmers.

“New KCC has launched an ambitious refurbishment program in some of our 22 plants in Nairobi, Eldoret, Nyahururu and Sotik in readiness for the increased volumes of milk from our suppliers,” he said.