President William Ruto has actually devoted to clearing around Ksh400 million owed to dairy farmers by the end of October 2026, revealing significant structural modifications to the management of New Kenya Co-operative Creameries(KCC)as the nation browses extensive milk lacks.
Speaking throughout his main trip of Nandi County on Sunday, October 18, 2026, President Ruto mentioned that the federal government will totally settle exceptional fees to farmers who have actually gone unsettled for as much as 3 months.
The promise gets here amidst increasing public issue over Kenya’s milk supply deficits, which have actually interrupted operations for significant processors and highlighted systemic vulnerabilities throughout the nationwide dairy supply chain.
“Mwisho wa mwezi huu, tunataka kulipa madeni yote, ile ya maziwa. Kuna wakulima hawajalipwa miezi mbili, miezi tatu, tunataka kulipa kila mkulima,” he stated.
( “By the end of this month, we wish to clear all financial obligations, particularly for milk. There are farmers who have actually not been spent for 2 or 3 months, and we wish to pay each and every single farmer.
“)
The president validated the precise monetary requirement supplied by sector authorities, declaring the state’s preparedness to clear all impressive liabilities.
“Tuko na, nafikiri wameniambia shilingi milioni 400. Tutalipa kila mkulima deni yake, basi,” Ruto mentioned.
(“We have, I believe they informed me
, 400 million shillings. We will pay every farmer their financial obligation, which’s it. “)
Rigorous Monthly Payment Deadlines Introduced
To avoid the reoccurrence of unsettled financial obligations, President Ruto presented a stringent payment timeline needing processor management to pay out farmer profits before the 5th day of every calendar month.
“So, na tumesema maziwa yetu tunataka ilipwe before tarehe tano, kila mtu amelipwa pesa yake, hatutaki madeni,” he stated.
( “So, we have actually stated we desire our milk spent for before the 5th date; everybody paid their cash; we do not desire financial obligations.”)
This regulation enhances earlier federal government interventions in the dairy sector, consisting of a 2024 governmental order mandating New KCC to purchase raw milk from farmers at an ensured minimum rate of Ksh50 per liter.
Decentralizing New KCC Factory Operations
Beyond instant financial obligation relief, President Ruto revealed a structural overhaul to decentralize New KCC operations, moving monetary control far from the home office in Nairobi straight to regional processing centers.
“Unajua kwa muda mrefu, KCC ilikuwa inaendeshwa kutoka Nairobi, na wenye wako Nairobi hawana maziwa, sisi ndio tuko na maziwa,” he stated.
( “You understand for a long period of time, KCC was ranged from Nairobi, and those in Nairobi do not produce milk; we are the ones with the
milk.”)
He faulted the central management design, explaining that earnings created from regional milk shipments was consistently diverted to settle unassociated main business responsibilities.
“Wakipata pesa wanaenda kulipa sijui deni gani, wanaenda kulipa sijui supply ya gani, wanaenda sijui kulipa nani,” Ruto mentioned.
(“When they get cash, they go to pay I do not understand what financial obligation, they go to pay I do not understand what supply, they go to pay I do not understand who.
“)
Under the proposed reform, New KCC factories will embrace self-governing management structures imitated tea and coffee processing cooperatives.
“Sisi tumesema kila factory ijisimamie. Hii ya maziwa kila factory ya KCC sasa itajisimamia,” he stated.
( “We have actually stated every factory needs to handle itself.
For this milk sector, every KCC factory will now handle itself.” )
Direct Local Accountability and Debt Absorption
The President highlighted that regional factory management boards will deal with direct responsibility for functional effectiveness and timely payment schedules.
“Ndio maneno ikienda kombo hatutafuti mtu Nairobi, tunatafuta huyu chairman wetu hapa,” he stated, alerting that mishandling regional factory funds will bring administrative and legal repercussions.
(” So if things fail, we will not try to find somebody in Nairobi; we will hold our regional chairman right here liable.”)
To guarantee regional processing centers begin with a tidy balance sheet, the nationwide federal government strategies to take in historic business financial obligations built up at the head office level.
“Ile madeni imebaki kwa KCC huko ya kule Nairobi, hiyo mimi nitapambana na hiyo kule Nairobi,” he specified. “Lakini kila factory tutahakikisha kwamba hawana madeni. Deni tutachukua kama serikali, sasa nyinyi ni kuuza maziwa yenu, mnajilipa, tunasonga mbele.”
(” As for the financial obligations staying at KCC head office in Nairobi, I will handle that in Nairobi. We will make sure every factory runs without financial obligations. We as the federal government will soak up the financial obligation; your task now is to offer your milk, pay yourselves, and move on.”)
The administration now deals with 2 crucial criteria: finishing the Ksh400 million payment by October 31, 2026, and imposing the regular monthly November 5 payment due date throughout all local KCC processing systems.
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