Kenya Government Now Changes Tune On Selling KCC

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Kenya Government Now Changes Tune On Selling KCC
Kenya Government Now Changes Tune On Selling KCC: File image of CS Simon Chelugui.

Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui now says the government cannot sell the New Kenya Co-operative Creameries (KCC).

Speaking on Friday, December 1, Chelugui said KCC was removed from the privatisation programme by the Cabinet in 2019.

The Cooperatives CS noted that the position stands until the current Cabinet reverses the resolution.

“I want to state as follows, on March 29, 2019, the Cabinet resolved to remove KCC from privatisation programme. That resolution stands and can only be reversed by a similar Cabinet resolution,”said Chelugui.

He pointed out that KCC acts as a buyer of the last resort, makes government intervention in addressing the dairy sector, and stabilizes milk prices.

“You have seen we have given you Sh 500 billion on Friday and we have set the price at Sh45, others are now at Sh33. Those are private agencies, it is take it or leave it from them,” Chelugui explained.

The Cooperative CS further mentioned he will be writing to his National treasury counterpart Njuguna Ndung’u and tell him about the Cabinet resolution that removed KCC from the privitisation programme.

“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. In any case we have to sell KCC our first offer will be to the farmers,” he added.

KCC was among the eleven state agencies that the National Treasury has lined up for sale.

Others are; Kenya International Conference Centre (KICC), Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills, Western Kenya Rice Mills Limited, and Kenya Pipeline Company, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex.

By Ezra Nyakundi

Source-https://www.nairobileo.co.ke/

 

Kenya Government Now Changes Tune On Selling KCC

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