Situation overview

New Kenya Cooperative Creameries (New KCC) has been delaying payments to milk suppliers across several counties, prompting protests and mounting farmer complaints. Farmers say they have not received payments for months and face severe cash-flow problems that threaten livelihoods and herd maintenance.

Reported scale and examples

• North Rift: Farmers claim New KCC owes about KSh 300 million and protested after up to six months without payment.
• Trans Nzoia: More than 10,000 suppliers report about KSh 120 million outstanding covering roughly three months of deliveries.

Causes and government response

The government says New KCC is struggling with liquidity and outstanding debts from public agencies (reported around KSh 180 million), which constrain its ability to clear farmer payments. Officials are discussing structural fixes, including a push toward privatisation as part of a plan to stabilise the business and restore payments.

Immediate impacts on farmers

• Cash shortages for daily household needs and farm operating costs.
• Risk of loan defaults and reduced investment in herd health and feed.
• Threat of reduced production or exit from dairy by some smallholders, worsening local food and income security.

What farmers and stakeholders can do now

• Document unpaid invoices and delivery records to present to cooperatives, county offices, or farmer unions.
• Engage county agricultural officers and national farmer bodies (e.g., KenAff) to escalate claims and seek interim support.
• Explore short-term alternatives: diversify milk buyers where possible, or negotiate emergency credit with local SACCOs while pursuing formal claims.

Quick verdict

The immediate issue is liquidity and unpaid public-sector debts affecting New KCC’s cash flow; the government is considering privatisation and other measures, but farmers currently remain exposed and need urgent support and collective action to recover payments.

Sources:

North Rift Dairy Farmers Protest Over Delayed Milk Payments from KCC

Trans Nzoia Dairy Farmers in Agony as New KCC Withholds Payments

Govt Pushes KCC Privatisation to Solve Farmer Payment Crisis