Ruto announces Sh2 billion capital injection into KCC

President William Ruto has announced a final Sh2 billion capital injection into the Kenya Cooperative Creameries (KCC), emphasising that no further public funds will be committed unless comprehensive reforms are implemented to prioritise farmers in ownership and decision-making.

The President noted that the government had already injected Sh6 billion into KCC over the past three years, but operational and governance challenges have persisted.

“In the last three years, I have put Sh6 billion into KCC, but it still has problems. This week, we are putting another Sh2 billion, and that will be the last money we are putting into KCC. Hakuna pesa ingine nitaweka,” Ruto said.

Drawing lessons from reforms in the sugar sector, Ruto highlighted that previous cash bailouts had not delivered sustainable results until structural changes were undertaken.

“Kwa sababu ile kazi nilifanyia watu wa sukari, tuliweka pesa, tukaweka pesa lakini haikusikia. Tukaenda tukafanya reforms, sasa maneno imeenda laini,” he said.

Speaking on Saturday in Moiben, the President said he had directed the Ministry of Cooperatives and Micro, Small and Medium Enterprises Development to implement reforms that will give farmers greater ownership of KCC.

Under the proposed model, KCC factories will be regionally owned and managed by farmers from their respective milk sheds.

“Kila factory iwe Sotik, Eldoret, Githunguri ama Nyahururu iwe ya wakulima wa hiyo sehemu hiyo,” Ruto said.

He added that the government’s role will be primarily supportive, supervising reforms and providing limited capital.

Ruto indicated that KCC would be restructured along the lines of successful farmer-owned models such as the Kenya Tea Development Agency (KTDA) and reformed sugar mills, where ownership, management, and benefits are closely aligned with producers.

“Kutoka hapo, vile kampuni ya sukari na ya chai inaendeshwa, tutaendesha KCC,” he said.

The President also criticised what he described as centralised management in Nairobi, which he said has historically disadvantaged farmers.

He noted that even his office is owed payments by KCC, highlighting ongoing cash-flow challenges.

“Hata mimi nikisimama hapa sasa, nadai Eldoret KCC pesa ya miezi nne,” Ruto said.

He emphasised the need for transparency and accountability in KCC’s operations, saying that milk proceeds should reach 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 reforms are expected to redefine governance at KCC and strengthen farmer confidence in one of the country’s key dairy institutions.