Dairy farmers across the country have protested against the government’s plans to privatize state corporations, including New Kenya Cooperative Creameries (KCC). Farmers claim that privatization will shortchange small-scale farmers and millions of households from marginalized communities.
Farmers’ representatives, including Ann Wachira, Lydia Kagema, Miriam Bushati, David Koskei, and Muchemi Nderitu, urged the state not to privatize the New KCC.
They also stated that the modernization of the new KCC was meant to have a positive ripple effect, which is now being threatened by the current government’s move to privatize it.
Farmers echoed Deputy President Rigathi’s speech on June 27 at the Dandora factory, stating the milk industry is one of the sub-sectors of the economy earmarked for reforms.
The farmers further urged the government to explore more innovative ways of value addition, as well as locating international markets to boost the sector.
“The only way the state can protect and further grow New KCC is by securing assets owned by the milk processor to protect the interests of dairy farmers across the country,” said David Koskei.
In 2000, former President Mwai Kibaki bought back the KCC and ensured it became a state entity. The government then parted with Sh547m to have its assets reverted back to the government.
Before then, KCC had been taken over by private ventures under the control of a few entities. The NARC Government renamed and registered the company as New Kenya Cooperative Creameries Ltd.
Kenya last privatized a state-owned company in 2008 when it issued an Initial Public Offering (IPO) for 25 percent of the shares in the telecommunications firm Safaricom. Privatization and restructuring are geared towards the government’s efforts for fiscal consolidation and spurring economic development.
