The New KCC Kiganjo Factory in Nyeri County has benefited from new equipment worth Sh. 150 million procured by the government to modernise the factory.
Speaking when he presented the state of the art milk processing machines at the factory, the New KCC Managing Director (MD), Nixon Sigey said the modernisation programme started three years ago in all milk processing factories in the country had cost the government Shs.1 billion.
Sigey said the programme had come with many benefits, adding that farmers’ payout since the programme started had increased from shs.2.5 billion to Shs.4.5 billion per year.
The MD at the same time, assured dairy farmers that New KCC has the capacity of processing and efficiency required to do value addition on all the milk they were able to produce.
He said the new KCC was determined to ensure they got their benefits in time because it was providing the products to a ready market.
“We want to be able to process at least 1 million litres per day,” ’said Sigey.
The MD added that the installation will directly and indirectly create employment to the youth after installation of the new state of the art processing equipment in all factories across the country.
He expressed hope that by the time the modernization process is complete, the farmers’ payout will be around Shs.6 billion.
Sigey called on the youth to engage in dairy farming so that they could benefit from the programme.
He said about 2 million households in the country were directly benefitting from the dairy sector, adding that in the next one year, KCC plans to bring more diversification in terms of products from the factory
The MD however, said the only challenge that ought to be dealt with was management of the cost of production which will enable the sector remain competitive within the country and the region and so farmers could be assured of better returns.
The new KCC Chairman, Gathigi Kahiu called on the youth to desist from betting and instead venture into agribusiness saying the sector was more profitable.
He said the equipment that was being used by KCC were obsolete and there was need to modernize them.
The area MP, Kanini Kega who is the Parliamentary committee chairperson for trade and industrialization urged the government to reduce the cost of electricity which he said was too high and accounts for 50 per cent of production and any efforts to boost manufacturing needs to address this issue.
By Beth Ndirangu
