The Government has decided against selling the New KCC Sotik factory to private investors. Instead, the planned restructuring will keep the facility under public ownership while enabling farmer-owned entities to handle certain commercial activities, according to the Ministry of Cooperatives and Micro, Small and Medium Enterprises Development. The ministry said New KCC will retain ownership of the factory, machinery and other assets under the proposed leasing arrangements.
The decision came after Sotik MP Francis Sigei raised concerns about the factory's future and its effects on dairy farmers, workers and suppliers. The Government says the restructuring aims to improve how the facility operates, increase farmer involvement in milk processing and marketing, and address working capital difficulties at the state-owned processor.
The Sotik factory received approximately Sh153 million for modernisation between the 2016/17 and 2020/21 financial years, which involved replacing old machinery and increasing processing capacity by 100,000 litres of milk daily.