20 October 20261 min read

Ruto plans to split New KCC into eight separate factories

President Ruto says each of New KCC's eight factories will run on its own and serve nearby markets, and that about Sh400 million owed to dairy farmers will be paid by the end of October.

Dairy cows behind the rails of a milking stall on a farm in Murang'a — Photo: Maina Pat Mbae, CC BY-SA 4.0, via Wikimedia Commons (cropped)

Sh400m

owed to dairy farmers, which the President said will be paid by the end of October

Speaking in Kapsabet on 18 October, President William Ruto said New KCC's eight factories will each be run on their own and supply the markets near them, instead of moving milk through one central system. He compared the plan to the way KTDA's tea factories are run, and said the factories should come to be owned by local farmers.

“The issue of transporting all the milk from one single place to the rest of the country will now come to an end,” he said. He added that about Sh400 million owed to dairy farmers would be paid by the end of October.

No timetable, legal steps or cost for the change have been published.

Less milk reaching processors

The plan comes as processors receive less milk. KNBS figures show milk taken in by processors fell 3.1% to 263.6 million litres in April to June 2026, compared with the same months of 2025, because farms supplied less.

Why it matters

New KCC is the largest state-owned dairy processor, so how it buys and sells milk affects the prices paid to farmers and the wider market.
Running each factory on its own could change who supplies, transports and packages milk around each plant.
It is a plan announced in a speech; the details have not yet been published.

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