President William Ruto has announced plans to decentralise Kenya Cooperative Creameries (KCC) factories in a new strategy aimed at easing the milk shortage and lowering prices for consumers.
While speaking during a church service in Kapsabet, Nandi County, President Ruto said the eight New KCC factories across the country would operate independently, allowing each facility to manage production and distribute milk directly to its surrounding markets.
Under the proposed changes, regional factories will no longer depend on the centralised distribution system, which has seen milk routed through the Nairobi factory before reaching other parts of Kenya.
"The issue of transporting all the milk from one single place to the rest of the country will now come to an end. Moving foward, all KCC factories will now operate indepenedently from each other in order to solve the milk shortage issue, and also drive the milk prices down, " President Ruto stated.
New Kenya Cooperative Creameries (New KCC) head office in Nairobi
Photo
New KCC
Previously, the arrangement required milk processed or handled through the Nairobi facility to be redistributed to other regions, creating additional transportation and distribution costs along the supply chain.
The new plan, according to President Ruto will emulate the Kenya Tea Development Agency (KTDA), which operates in a decentralised system .
While KTDA employs a centralised corporate governance structure for bulk procurement and marketing, its core operational, financial, and manufacturing frameworks are strictly decentralised.
Ruto's plan will allow each of the eight factories to supply consumers in their respective regions directly, reducing reliance on centralised operations and making distribution more efficient.
Alongside the planned reforms, Ruto pledged that the government would pay approximately Ksh400 million owed to dairy farmers by the end of October.
The promised payment is expected to help farmers meet production costs and support milk supply as the country continues to grapple with shortages affecting consumers and households.
The shortage has been linked to prolonged drought, deteriorating pasture and high animal feed costs, which have made it increasingly difficult for farmers to maintain milk production.
By shortening distribution routes and reducing unnecessary logistical expenses, the government hopes the new KCC arrangement will help bring milk prices down for ordinary Kenyans.
Meanwhile, President Ruto has also proposed exploring alternative sources of milk production, directing the State Department for Livestock to examine the potential of improved camel and water buffalo breeds.
The proposed diversification would seek to strengthen Kenya's dairy supply against climate-related challenges, while the decentralisation of New KCC factories is expected to address distribution inefficiencies and improve access to milk.
The Agriculture and Fisheries Cabinet Secretary, Mutahi Kagwe, detailed, while appearing before a Senate committee on September 16 State Department of Livestock Development procured the coolers during the 2024/2025 financial year at a contract sum of Ksh1.4 billion to shield the country against incidences of milk going bad.
A collage of Milk Cooling machines.
Photo
GDITECH