The government will spend Sh5 billion in modernising New Kenya Co-operative Creameries to enhance its efficiency to meet the needs of farmers.
President William Ruto said on Wednesday that the goal is to bolster New KCC's processing capacity to handle the entire volume of milk produced by farmers.
Ruto said the Sh5 billion is part of the Sh37 billion that the government of India has committed to support agricultural transformation in the country.
"The government will make the New KCC more efficient, facilitate training, invest in value addition and secure lucrative markets that will offer better returns to milk farmers. This will ensure that we double our production to more than 10 billion litres a year to drive our growth," the President said.
He spoke when he commissioned the modernised New KCC Nyahururu Factory in Laikipia County.
Ruto said the facility will serve more than five counties with a processing capacity of at least 150,000 litres of milk per day from the current 80,000 litres.
The President observed that the government will help farmers get quality animal breeds that do not consume a lot of feed to maximise profits.
He said the government has further allocated the Agriculture Finance Corporation Sh10 billion to enhance farmers’ access to seasonal credit.
Meanwhile, the President assured farmers that they would get this season’s fertiliser on time at a subsidised price of Sh2,500.
“Investing in agriculture is the best way to create wealth and expand opportunities for the people and reduce the cost of living and food,” he said.
The President was accompanied by Deputy President Rigathi Gachagua, Cooperatives and Micro and Small Enterprises Cabinet Secretary Simon Chelugui, Defence PS Patrick Mariru, Laikipia Governor Joseph Irungu, Senator John Kinyua (Laikipia) and MPs Kimani Ichung'wah (Kikuyu) Stephen Wachira (Laikipia West), among other officials.
The DP said reforms in the agricultural sector have started to bear fruits, citing improved earnings by tea, coffee and milk farmers.
"The last bonus has been the highest in the history of tea farming in this Republic,” he said.
Gachagua condemned unscrupulous business people who have been making attempts to smuggle powdered milk into the country.
"The security agencies have been directed to ensure that this doesn't happen. If you want to be in the milk business, buy farmers’ milk," he said.
The DP said the smuggling of dairy products was presenting unfair competition in the local market.
