3 June 2018

Kenya: New KCC in Sh1 Billion Project to Upgrade Factories

The New Kenya Cooperative Creameries (KCC) is modernising its factories at a cost of Sh1 billion in a bid to improve production and increase its regional and local market control share.

This will increase the company's capacity from the current annual payout to farmers of Sh4.5 billion to Sh6 billion.

Mr Nixon Sigey, the company CEO, said the modernisation process will enable New KCC to reposition itself as the leading milk processor in the region by enhancing quality and quantity of its range of products.

"Since the modernisation process started two years ago, the company has increased its market share from 20 per cent to the current 35 percent. At the end of the exercise in a year's time, we expect to over shoot the 40 per cent currently controlled by the market leader," Mr Sigey said. He said the company exports its products to Tanzania, South Sudan and South Arabia.

He said increased production would enable it to widen its foreign market scope. "New KCC is ranked number 27 globally on quality of its variety of milk products. Upon competition of the ongoing modernisation, we would be able to sell our products anywhere in the world," Mr Sigey stated.

Mr Sigey, who was accompanied by Bomet Governor Joyce Laboso, was speaking at Sotik KCC plant when he received ultra-modern machines worth Sh200 million to replace old ones that were installed in the early 1980s.

He said the upgrade will see farmers from the region earn upto Sh1.5 billion a year from the present Sh850,000. Dairy farmers from Bomet, Narok, Kericho, Nyamira and Kuresoi in Nakuru deliver their raw milk to Sotik plant.

Mr Sigey said the Eldoret and Nyahururu factories were covered under phase one of the modernisation process while phase two comprises Sotik, Nakuru and Dandora factories. Phase three, which will be the last one, covers Kiganjo, Kitale and Miritini factories.

"Following the ongoing modernisation of the new KCC factories and armed with the latest technology we are able to cope with emerging trends in the market," Mr Sigey said.

He said the company would partner with county governments to improve dairy animal breeds kept by farmers to increase production of quality milk.

Dr Laboso said the agriculture department in her administration was working closely with the New KCC and other stakeholders to educate farmers on modern farming techniques.

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