KCC Privatization: A Betrayal of Kenya’s Dairy Farmers
By Kenya Farmers Association Director Kipkorir Arap Menjo
In 2003, we presented a memorandum to then-President Kibaki’s regime advocating for the revival of the Kenya Cooperative Creameries (KCC). The dairy farmers of Kenya had seen their beloved KCC, which was once a cornerstone of the dairy industry, misappropriated. Those who had seized it were compensated with Sh547 million plus accrued interest. We were assured that once restored, KCC would return to its rightful owners—the farmers.
Initially, the government’s intervention transformed KCC into a parastatal, allowing for the infusion of government funds and ensuring that the company remained operational. Under the effective leadership of Mwangi wa Iria, the dairy farmers revitalized the creamery, providing a steady milk supply and significantly enhancing its performance. However, despite the company’s success, no further steps were taken to complete the promised transfer of ownership to the farmers, even though it began earning substantial dividends for the Exchequer.
Fast forward to May 2014, when President Uhuru Kenyatta’s regime sought to reinitiate the privatization process. We were called to the School of Government to discuss the proposal. The government’s suggested shareholding structure was a blatant attempt to marginalize the farmers. It allocated only 31% of shares to us while giving another 31% to an anonymous strategic investor, 10% to the government, 25% to consumers, and a mere 3% to employees. This inequitable distribution was rightfully rejected, and MPs supported our position, halting the privatization process.
Now, with the KK administration reviving the privatization scheme, the stakes are even higher, and the tactics appear more cunning. We must remind all stakeholders that the assets of KCC, which are valued in the billions, rightfully belong to the farmers. The government’s claim of ownership is based on the modest Sh547 million used to reclaim the creamery. The dairy farmers across the country are prepared to match this amount or negotiate a fair 10% share for the government to ensure equitable distribution.
Any deviation from this plan will be viewed as a deliberate attempt to exploit the situation for personal gain, akin to the deceitful practices observed elsewhere. The truth must prevail: the creamery belongs to the farmers, and we will continue to fight for its rightful return.
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