New KCC pulled its stock from Nakumatt Supermarkets in what it says is a bid to protect its business in the wake of uncertainties at the East Africa’s largest retailer.
Githunguri Dairy also stopped supplies to Nakumatt last year citing non-payment. The processor has been holding talks with the retailer on how to resume supplies.
This is the second time in three months the State-owned processor is pulling out stocks at Nakumatt owing to huge arrears from previous supplies.
New KCC managing director Nixon Sigey said the decision was reached last week to allow consultations on whether the creamery should continue supplying goods or not.
New KCC withdrew its stocks last February in protest over delayed payments that went beyond the agreed credit period of 90 days.
However, it resumed supplies a month later under a special arrangement with Nakumatt that saw the processor cut supplies by about 20 per cent of the original agreement.