Deputy President William Ruto has said that the government will inject Sh400 million to modernise machinery at the New Kenya Cooperative Creameries (NKCC) plant in Eldoret.
Speaking over the weekend in Kapseret constituency, Ruto said that the move is meant to increase production efficiency at the facility.
Ruto said the government had set aside the funds that will be disbursed to the company immediately. He said that the company is facing difficulties in production due to old machines
“We want to invest in modern machinery so that production can increase and farmers can get an opportunity to supply more milk,” he said.
The deputy president said that better machinery and increased production would enable the company sell its products to international markets.
Ruto said that there exists a good market for milk and milk products internationally while urging farmers to embrace dairy farming. He intimated that the government would help the company access more international markets and in effect increase incomes for dairy farmers.
Meanwhile, a section of leaders in North Rift have opposed the plans for privatisation of the dairy company.
Led by Uasin Gishu Governor Jackson Mandago, the leaders allege that it is a scheme by some powerful individuals to benefit.
“We are aware that some powerful people are scheming to get the majority of the company’s Sh6 billion assets through privatisation,” said Mandago.
The Uasin Gishu Governor said that the company should be left in hands of farmers since it their money that was used to set it up.
Mandago said that they have written to the government demanding that the company be handed to farmers.
Other leaders opposing the privatisation of the company are Turbo MP Elisha Busienei, Kepseret MP Oscar Sudi and Moiben MP Sila Teren.
In an article on The Standard dated Monday, July 15 2013 NKCC Managing Director Dr Kipkirui arap Lang’at said the process of privatisation was ongoing.
“The future of the Company (NKCC) with regard to privatisation remains an on-going process, which we are confident will be concluded successfully and to the satisfaction of all relevant stakeholders,” he wrote.