Cooperatives Cabinet Secretary Wycliffe Oparanya has now warned that any state-owned milk processor that fails to pay farmers on time as directed will be held to account.
Oparanya expressed his disappointment at what he termed as a continued drop in the supply of milk by farmers to the New Kenya Cooperate Creameries (KCC) factories.
He attributed it to failure by respective factories to release the dues on time as directed by the government.
All factories, he said, must adhere to the presidential directive and pay farmers their dues on the 5th of every month.
"Can you imagine Meru cooperatives collects one million litres of milk per day and it only operates within Meru and Tharaka Nithi, Brookside collects 800,000 liters per day while Githunguri collects 600,000 liters," he said.
KCC, on its part, he said collects a paltry 150,000 litres on a day.
"Can you imagine. Are we not joking?" he posed.
Speaking in Uasin Gishu, Oparanya pointed out that the government has released Sh1 billion to KCC for payment of arrears and there is no excuse why payments should be delayed.
"We are expecting another Sh1 billion to clear all the arrears," he added.
He also announced plans to have a bank account opened to ensure timely payments for milk delivered.
This, he said, will be opened once all the arrears have been cleared.
Speaking recently in Nandi, President William Ruto ordered KCC to pay farmers Sh50 for every liter of milk delivered.
He noted that the money injected would strengthen the sector and help enhance the capacity of dairy farmers to increase production
He said there was a milk shortage in the country hence the government plan to support farmers to produce more.
"As from September, the farmers supplying milk to all KCC centres will be paid Sh50 per litre and the extra Sh3 will be remitted to cooperatives and SACCOS and also take care of transportation costs," he said.