Ruto’s dairy promise: Sh65 milk and farmer-owned New KCC

President William Ruto has announced plans to decentralise the New Kenya Cooperative Creameries (New KCC), giving farmers greater control of factories and promising to raise milk prices to Sh65 per litre as part of reforms aimed at making the state-owned processor profitable.

The President also pledged to clear Sh400 million in outstanding payments owed to dairy farmers, saying the proposed changes would give producers better returns and enable them to benefit directly from the performance of their factories.

Speaking in Kapsabet during the launch of development projects in Nandi County, Dr Ruto said the reforms would borrow from changes in the tea, coffee and sugar industries, which his administration says have been transformed into more vibrant subsectors that empower farmers to earn better returns.

“We want the New KCC factories to be autonomous and owned by farmers in their areas of jurisdiction as we plan to inject capital to sustain their operations,” he said.

Dr Ruto said the government wanted to end a system in which factories were managed remotely from Nairobi, arguing that local ownership and autonomy would improve efficiency, payments to farmers and profitability.

“We don't want a situation where the New KCC factory in Eldoret is managed from Nairobi. The farmers should be allowed to own their factories, get better payments and earn dividends,” he said.

The government has injected Sh8 billion into New KCC over the past three years to stabilise its operations.

The proposed restructuring comes as the administration seeks to strengthen agricultural value chains and improve farmers' earnings through reforms in key sectors of the economy.

The head of state also announced plans to upgrade the Eldoret-Kapsabet-Chavakali road into a dual carriageway to ease congestion and improve the movement of goods and services across the region.

He said the project was part of the government's broader infrastructure investment programme and would help unlock the economic potential of Nandi and neighbouring counties.

“As we construct roads in other parts of the country, we don't want Kapsabet to be left behind. That's why we are making the Eldoret-Kapsabet-Chavakali road a dual carriageway to ease transport of goods and services,” he said.

He also announced the release of Sh21 billion for road infrastructure, including Sh1.3 billion for the Yala-Chepkumia-Kobujoi road, which he said would open up the county's economic potential.

Dr Ruto said the government would use the Road Maintenance Levy to improve infrastructure across the country, insisting that the distribution of resources should reflect the principle of equity.

“We are going to utilise the Road Maintenance Levy to fix infrastructure countrywide in the spirit of equity and distribution of resources. That's what we mean when we say ‘Usawa ni sawa’,” he said.

On healthcare, the President pledged Sh500 million towards the construction of a Level Five hospital in Kapsabet, as he outlined plans to establish Level Five facilities in every county to improve access to quality medical services.

He cautioned against diverting Social Health Authority (SHA) funds to infrastructure projects, saying the money should instead be channelled towards medicines and other healthcare services.

The President said 630,000 residents of Nandi County had registered with SHA, adding that his administration was committed to making healthcare more accessible and affordable.

In education, Dr Ruto announced that Koitalel Samoei University, currently a constituent college of the University of Nairobi, would receive its university charter in February 2027, paving the way for it to become a fully fledged university.

The government has allocated about Sh3.5 billion for infrastructure development at the institution in Nandi Hills.

The President also pledged to complete the construction of Kipchoge Stadium in Kapsabet and equip it with a gymnasium and other modern athletics training facilities.

He said Nandi, known for producing world-class athletes, deserved facilities that would help nurture future champions.

“Nandi, being the source of champions, has done us proud by producing athletes who have won medals globally, including the likes of Eliud Kipchoge, and we want them to have modern training facilities,” he said.

He said leaders should be judged on their development plans, track records and vision for the country rather than political rhetoric.

Prime Cabinet Secretary Musalia Mudavadi expressed confidence that President Ruto would win a second term in 2027, predicting a landslide victory that would leave his opponents with no grounds to challenge the presidential election results.

National Assembly Majority Leader Kimani Ichung'wah said the Central Kenya region had benefited from the President's development initiatives and would support his re-election.

Interior Cabinet Secretary Kipchumba Murkomen, meanwhile, criticised Trans Nzoia Governor George Natembeya over his opposition to the planned Sh500 million Level Five hospital in Kitale, which President Ruto announced during his tour of the county last Friday.

Mr Murkomen also accused the governor of threatening to interfere with the operations of the Masinde Muliro modern market, which the President launched during his tour of Trans Nzoia last week.

He warned that the government would take action if the governor incited members of the public to disrupt nationally funded projects.

“The law will act tough against Mr Natembeya in case he incites the public to interfere with the national government-funded projects in the county. He is not above the law and we shall deal with him,” Mr Murkomen said.

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