New KCC to pay dairy farmers Sh500m dues
New KCC Managing Director Nixon Sigey on October 22, 2015. He has said the government will pay Sh500 million owed to dairy farmers who supplied milk to the old Kenya Cooperative Creameries more than 20 years ago. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- The farmers had demanded the government’s intervention after the company failed to honour its promise to pay them for their deliveries.
- Thousands of farmers had “suffered enough” after their payment claims were not honoured.
The government has finally agreed to pay Sh500 million owed to dairy farmers who supplied milk to the old Kenya Cooperative Creameries more than 20 years ago.
The farmers had demanded the government’s intervention after the company failed to honour its promise to pay them for their deliveries.
On Tuesday, New KCC Managing Director Nickson Sigei said: “I want to assure dairy farmers who supplied their milk during the Kanu regime that they will definitely be paid all their dues.”
He went on: “New KCC is now stable. We are ready to clear the Sh500 million debt we inherited from the old management.”
The MD made the remarks during a funds drive in aid of St Luke’s Chereber ACK Church in Nandi County.
SUFFERED ENOUGH
He said the thousands of farmers had “suffered enough” after their payment claims were not honoured.
“Some even died while others lost their property to auctioneers,” he added.
The MD said the company was now committed to improving the lives of the farmers. He urged them to increase their milk supply to the firm.
He revealed that the company will use Sh400 million to upgrade its factory in Eldoret to enable it to serve better the increasing number of farmers delivering milk to it.
“We also intend to upgrade the one in Kapsabet to enable it to process and package produce,” he added.
Farmers welcomed the announcement, describing it as timely.
