MPs demand answers on plans to privatise New KCC

 

Workers at the New KCC processing plant in Eldoret, Uasin Gishu County.  [File, Standard]

Members of Parliament have raised concerns over plans to transition the New Kenya Cooperative Creameries (KCC) from State ownership to private management, warning that the move could have far-reaching implications for dairy farmers, employees and other stakeholders.

Sotik MP Francis Sigei sought a statement from the National Assembly Committee on Agriculture and Livestock on the current status of the proposed transition, including details of the plans and timelines for moving New KCC from State ownership to private management.

Sigei said the committee should also clarify whether there are other plans concerning the ownership and management of the dairy processor.

He highlighted the importance of New KCC, particularly its Sotik plant, to the dairy sector value chain, noting that the facility provides a critical market for milk produced by farmers in the region.

According to Sigei, the plant has helped promote stability in the dairy sector while supporting the livelihoods of hundreds of households that depend on milk production and related activities within the rural economy.

The MP's queries come amid growing concerns over how the proposed transition will affect farmers who rely on New KCC as a market for their milk, as well as workers and other stakeholders who depend on the company.

Sigei noted that the proposed takeover has caused anxiety among dairy farmers, employees, suppliers and service providers, some of whom have not been paid their dues, including remittance of statutory deductions, since June 2026.

“The lack of clarity in the process, the timeliness and the safeguards for public assets and the interests of farmers, employees and stakeholders has caused a lot of uncertainty about the future of the New KCC plant in Sotik,” he said.

The MP wants the Agriculture and Livestock Committee to establish the current ownership and operational status of the Sotik plant and provide details on any plans, timelines and procedures for transitioning the state-owned milk processor to privately-owned.

Sigei noted that the committee should explain the policy rationale behind the proposed change, including its objectives and the expected benefits to dairy farmers.

He demanded that details of any public participation and consultations undertaken before the proposed transition be provided, in addition to whether dairy farmers, co-operative societies, employees, suppliers, consumers and other stakeholders have been consulted and how their views have influenced the process.

The MP has also sought a comprehensive audit of all outstanding debts and liabilities involving the Sotik plant.

These include money owed to dairy farmers, co-operatives, suppliers, employees and other creditors, as well as liabilities owed by the plant. He said arrangements should be made to settle or offset the debts before or during the transition.

Of particular concern to Sigei is the protection of public investments at the plant, noting that the committee should explain measures put in place to safeguard the plant's land, buildings, machinery, equipment, infrastructure and other public resources from loss or improper disposal during the transition.

The MP said any decision to change its management structure should take into account the interests of farmers who rely on the company as a market for their milk and called for clarity on the regulatory and oversight framework that would govern New KCC under private management.

The framework, he said, should guarantee continued support for the dairy sector while promoting fair competition, transparency and accountability.

Sigei warned that lack of clarity over the process could deepen uncertainty in Sotik and undermine confidence among farmers and other stakeholders who depend on the plant.

He said Parliament requires assurances that the transition, if approved, would not compromise the public interest or undermine the role New KCC has played in supporting Kenya's dairy industry.