Kenya Cooperative Creameries (KCC) has finally announced that it will be paying about 100,000 dairy farmers millions of shillings owed to them.
The company, since renamed New KCC, will settle the debts in two phases.
The first payment starts end of March where farmers will get a total of Sh368 million out of the Sh500 million owed.
The remaining will be settled before the next financial year starting in July 1.
“The validation process has caused the delay since we want to ensure genuine people are paid. We conducted a rigorous verification with the various county cooperative departments since their dues dates back to 20 years ago, and the Sh368 million is now ready for payment to the registered farmers,” New KCC Chief Executive Officer Nixon Sigey said.
Mr Sigey noted at least 130,000 beneficiaries — including dairy farmers, transporters and co-operative movements that delivered milk in late 1990s before the old firm went under — would benefit from the funds.
he previous firm, KCC, collapsed in 1999 due to financial mismanagement. It was later placed under receivership, until the Narc administration took over its control in 2003, turning around its fortunes.