President William Ruto has announced a final KSh2 billion capital injection into state-owned Kenya Cooperative Creameries, commonly known as New KCC, declaring no further public funds will be committed without comprehensive reforms that prioritise farmers in ownership and decision-making.
Speaking on 3 January in Moiben, Uasin Gishu County, Ruto revealed the government had already injected KSh6 billion into New KCC over the past three years, yet operational and governance challenges persisted.
“In the last three years, I have put KSh6 billion into KCC, but it still has problems. This week, we are putting another KSh2 billion, and that will be the last money we are putting into KCC. Hakuna pesa ingine nitaweka,” the president said.
Lessons from sugar sector overhaul
Ruto drew parallels with reforms in the sugar industry, where repeated cash injections failed until structural changes devolved power to farmers.
“Kwa sababu ile kazi nilifanyia watu wa sukari, tuliweka pesa, tukaweka pesa lakini haikusikia. Tukaenda tukafanya reforms, sasa maneno imeenda laini,” he said.
Kenya’s dairy sector, dominated by about 1.8 million smallholder farmers who produce more than 80% of the country’s annual milk output of some 5 billion litres, has long grappled with delayed payments and low returns.
Farmer-owned regional model
The president directed the Ministry of Cooperatives and Micro, Small and Medium Enterprises Development to restructure New KCC along the lines of successful producer-led entities such as Kenya Tea Development Agency then KTDA and reformed sugar mills.
Factories in regions such as Sotik, Eldoret, Githunguri and Nyahururu would come under ownership and management of farmers from their respective milk sheds.
“Kila factory iwe ya wakulima wa hiyo sehemu hiyo,” Ruto said.
He criticised decades of centralised control from Nairobi headquarters that had sidelined producers.
Call for transparency and accountability
In a pointed remark, the president noted even his own farm was awaiting payment for four months, underscoring chronic cash-flow problems.
“Hata mimi nikisimama hapa sasa, nadai Eldoret KCC pesa ya miezi nne,” he said.
Ruto stressed that future government support would focus on oversight and limited seed capital, with milk proceeds reaching farmers promptly.
“We are going to undertake the reforms of KCC. We are going to make it farmer-owned, using models like KTDA and the sugar mills, so that we involve farmers in ownership and we will know what to do,” he said.
The planned changes aim to restore trust in one of Kenya’s key dairy institutions and secure stable incomes for millions of rural households.
