Government removes KCC from Privatization list

Nairobi,

Friday, 1 December, 2023. 

McCreadie Andias 

The Government has announced that the Kenya Cooperative creameries (KCC) will not be privatized as previously announced. 

In a Friday statement, Cabinet Secretary for cooperatives and Micro, small - medium enterprises Simon Chelugui retracted a previous directive to privatise the milk cooperative. 

"I want to state as follows. On March 22, 2019, the Cabinet resolved to remove KCC from privatisation. That position stands and can only be reversed by a similar Cabinet resolution," Chelugui stated.

According to Chelugui , KCC is a mega cooperate in the dairy sector providing market for local Kenyan dairy farmers. 

Additionally, Chelugui noted that the cabinet would not allow the privatisation of KCC as it was used to launch the government's interventions in the dairy sector. 

CS Chelugui further revealed that in 2019,Former president Uhuru's Cabinet had been warned against Privatization of the company due to its significant role in stabilizing the local dairy market. 

The National Treasury had on Monday, November 27 listed 11 state parastatals set to be privatised. 

These corporates included the Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills, Western Kenya Rice Mills Limited, Kenya Pipeline Company, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, Kenyatta International Conference centre and Numerical Machining Complex.