Gov’t strikes out KCC from State corporations put on sale; Reasons why.
Gov’t strikes out KCC: In a statement from cabinet secretary Chelugui, Kenya cooperative creameries has been removed from the list of parastatals to be sold by the government.
CS Chelugui stated,”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.”
He highlighted that KCC has been a backbone in the dairy sector, which also acts as the last resort buyer of milk from Kenyan farmers.
CS Chelugui also noted that the cabinet would not allow the privatisation of KCC because it wss used to launch the government’s interventions in the dairy sector.
Notably, he revealed that in 2019, former President President Uhuru Kenyatta’s cabinet had been warned of privatising KCC because of its role in diary stabilization.
He stated,”You have seen we have given you (dairy farmers) Ksh500 and that we have set the price at Ksh45. Others are now at Ksh33. Those are private agencies. It is take it or leave it from them. As a government, we cannot do that because we are conscious of the cost of production.”
” I am not saying privatisation is bad, but we want to complete the establishment and position KCC strategically and then offer it to the market,” he added.
Further, The cabinet secretary highlighted that if they plan on selling KCC in future, farmers would be given the first priority in buying the mentioned state corporation.
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