Trade and Investments Cabinet Secretary Moses Kuria yesterday held bilateral talks with Uganda’s Treasury Permanent Secretary Ramadan Ggoobi where they allowed Lato milk to invest in local dairy factories.
The two countries promised to work together to boost their respective dairy sectors, as Kenya ramps up competition in the dairy sector which government officials have constantly complained is dominated by one player.
“The meeting focused on mutual economic and investment objectives by the two countries as a follow up to the various bilateral meetings between to facilitate regional co-investment opportunities in strategic sectors,” said Mr Kuria.
The Ministry further said that Lato will invest in struggling factories to help revive them.
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The Trade Ministry said Kenya and Uganda agreed to joint planning of raw materials between the two countries to ensure all-around supply in a bid to facilitate competitive production.
According to the Competition Authority of Kenya (CAK), the Dairy sector in Kenya is led by Brookside Dairy Limited which controls at least 40% of the market, followed by New Kenya Cooperative Creameries (New KCC) which manages a 25 per cent share while Sameer Agriculture and Livestock controls 14 per cent of the market.
Others include Githunguri Dairy Cooperative (12 per cent), Pascha-Uplands Premium Dairies and Food (1.7 per cent), Musty Distribution (3 per cent), Doodla Dairy Kenya (0.9 per cent) while others have a 3.4 per cent market share.