Kenya Dairy Board chairman Matu Wamae has said the government's plan to privatise the New KCC and revert it to the dairy farmers is on course.
He said the milk processor is currently 100 per cent owned by the State after it was revived.
Mr Wamae said soon, dairy farmers who are shareholders will own the company. He was speaking at the New KCC Nyahururu factory during a shareholders’ Annual General Meeting on Friday.
Mr Wamae, however, pointed out that the government will retain between 10 and 20 per cent of the shares for oversight.
The chairman, at the same time, warned farmers against electing directors of questionable backgrounds to manage their factories when KCC is finally restored to them.
The chairman said the government is considering paying farmers who were shareholders of KCC when it collapsed. Mr Wamae told farmers that the New KCC is now insuring them at an average of Sh75 per month and appealed to them to join the scheme.
“The New KCC has entered into partnership with insurance firms and farmers should seize the chance to insure themselves. The Sh75 monthly, which will be deducted from milk deliveries, will cater for five members of a family,” he said.
The chairman disclosed that the company had entered into partnership with financial institutions that pay farmers in advance to protect them from delayed payments.
He encouraged the youth to engage in the dairy industry, adding that it was a critical sector that generates employment.