Cooperatives and MSMEs Cabinet Secretary Simon Chelugui said that the Kenyatta Creameries Corporation – KCC was not among the parastatals lined up for sale.
In a statement on Thursday, November 30, Chelugui affirmed that the government was not considering such a move for privatization despite earlier reports.
“And just for the record, New KCC is not one of the parastatals being considered for privatization,” he stated.
His statement came after a meeting with the New KCC board and its management in Naivasha.
Further in the statement, CS Chelugui affirmed his Ministry’s commitment to ensuring that the parastatal’s products hit the market again.
According to him, the dairy sector is one of the value chains and a key component of the Kenya Kwanza manifesto hence the commitment.
Chelugui on why KCC is critical
“As a ministry, we will do everything within our means to ensure that New KCC milk and dairy products are back on the shelves because this sector is a lifeline to millions of Kenyans,” he stated.
“The dairy sector is one of the value chains and a key component of the Kenya Kwanza manifesto hence our commitment and determination to see this company fully back on its feet.”
The KCC is a government-owned milk processing company with eight major processing factories, thirteen milk cooling plants and numerous satellite coolers across the county.
Treasury Cabionet Secretary Prof Njuguna Ndungu published a list of the corporations earmarked for privatization on Monday, November 27.
Also Read: Meet the Kenyan Man Who Designed KICC
Among the corporations listed included the iconic Kenyatta International Convention Center, New KCC, and Kenya Pipeline Corporation (KPC).
Treasury in the statement cited reasons including the need to avoid budget drain and expected benefits to be gained from proposed privatizations as some of the factors informing the move.
Move privatize parastatals sparks uproar
The news would later spark an uproar from Kenyans who protested the move to sell some of the parastatals and particularly the KICC.
In his response, however, Leader of Majority in the National Assembly dispelled the concerns raised terming them as “ignorant” and propaganda.
Also Read: KICC, Kenya Pipeline Among 11 State Companies Listed for Privatization
According to him, a big chunk of the KICC is occupied by government agencies including parliament who pay “peanuts” as rent.
As such, he averred that selling KICC would accrue the country more revenue from rent based on the current rates of property in Nairobi CBD.
“If KICC was for instance to be leased to a hotel chain with private sector’s expertise, you can imagine the amount of money the government would generate,” he stated while speaking in parliament.
