William Ruto's Govt Denies Plans To Sell KCC After Public Uproar: "We Cannot Do That"

• Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui dispelled claims that the government wanted to privatise the New KCC
• Chelugui stressed that the government is instead focusing on completing the establishment, positioning it strategically, and then offering it to the market
• He further stated that the discussion to include the facility to the privatisation list had been resolved by a previous cabinet in 2019

Nancy Odindo, a journalist at TUKO.co.ke, brings more than three years of experience covering politics, news, and feature stories across digital and print media in Kenya.

Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui has dismissed claims that the New Kenya Cooperative Creameries (KCC) is among the government entities up for privatisation.

Why New KCC cannot be sold?

The CS asserted that on March 29, 2019, a cabinet resolved to remove KCC from the privatisation list and that only the same cabinet can reverse its resolution.

According to KBC, while speaking in Naivasha on Thursday, November 30, Chelugui maintained that the state asset would not be sold unless the ministry issued a memo dictating otherwise.

“On privatisation, Chair, CEO, and the board of management unless another cabinet memo is brought, as far as cabinet is concerned, that is the position. As a government, we cannot do that because we are conscious of the cost of production,” he assured.

He added:

"I am going to write to the national treasury and quoting the cabinet resolution of march 29. And I will be bringing out the issues."

Chelugui stressed that the government instead strengthens the dairy processor, as it is the buyer's last resort.

The state official conveyed that the government would only approve the sale of the facility to farmers if it was deemed appropriate.

"And in any case, if we want to sell KCC, our first offer will be to farmers through their respective cooperative societies," he affirmed.

Acknowledging the importance of privatisation, the CS said that the government is committed to completing the establishment before offering it to the market.

“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,” he said.

State parastatals listed for privatisation

In November of this year, President William Ruto okayed the sale of 11 state-owned corporations.

The new KCC was on the list with a value of KSh 14.11 billion.