Cooperatives and MSMEs Cabinet Secretary Simon Chelugui has refuted reports in the media that the New KCC (Kenya Co-operative Creameries) is among the parastatals to be privatized.
Chelugui says the government is supporting the dairy processor, considering its importance to farmers, especially as a buyer of last resort.
He explained that “On March 29, 2019, the cabinet resolved to remove the New KCC from privatisation programme. That resolution still stands and it can only be reversed by a similar cabinet resolution.”
He added that ” Unless another cabinet memo is brought, as far as the cabinet is concerned, that is the position,” he assured the leadership of the dairy processor in a meeting Thursday evening in Naivasha.
Chelugui was speaking with the board of directors of the New KCC during a meeting called to deliberate the processor’s new strategic plan.
He also said he would write to the National Treasury on the issue quoting the 2019 resolution. In his letter to Treasury, Chelugui indicated that he would list reasons why the cabinet of the time thought KCC does not fit into the privatization programme.
Chelugui further disclosed that if the government were to sell the New KCC, the first offer would be to the farmers through their respective cooperative societies.
In the funds set aside for El Nino mitigation, the government allocated Ksh 500 million to New KCC, affirming Chelugui’s stand that the entity will not be sold.
List of 11 parastatals under privatisation programme
The government announced plans to privatise 11 parastatals, a move that saw Kenyans express their displeasure with the decision, especially the sale of the Kenyatta International Convention Centre (KICC).
Kenyans took to social media, showing their discontent with selling a landmark like the KICC.
According to the National Treasury report, the 11 public entities include Kenya Pipeline, Kenya Literature Bureau, KICC, National Oil Corporation, Kenya Seed Company, Mwea Rice Mills, Western Kenya Rice Mills, New KCC, Kenya Vehicle Manufacturers, Rivatex and Numerical Machining Complex.
Discussion about this post