Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui on Friday, December 1 disclosed the government cannot sell the New Kenya Co-operative Creameries (KCC).
Chelugui explained that the Cabinet in 2019 resolved to remove KCC from the Privitasion program and the resolution will remain in place until the Cabinet overturns it.
“I want to state as follows, on March 29, 2019, the Cabinet resolved to remove KCC from the privatisation programme. That resolution stands and can only be reversed by a similar Cabinet resolution,” said Chelugui.
He explained that KCC is a key parastatal that acts as the last resort buyer of milk from Kenyan farmers.
“You have seen we have given you Sh 500 billion on Friday and we have set the price at Sh45, others are now at Sh33. Those are private agencies, it is take it or leave it from them,” Chelugui explained.
The Cooperatives CS vowed promised to write to the National Treasury CS Njuguna Ndung’u to strike out New KCC from the list of parastatals to be privatised.
“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. In any case we have to sell KCC our first offer will be to the farmers,” he added.
KCC was among the 11 parastatals that the government put up for sale this week, others include; Kenya International Conference Centre (KICC), Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company Limited, Mwea Rice Mills and Western Kenya Rice Mills Limited.
The government has listed Kenya Pipeline Company, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex as other state agencies to be sold.
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