By Pascal Ndegwa - Reporter
Kenya, October 18,2026 - President William Ruto has announced major changes to the management of New Kenya Co-operative Creameries (New KCC) factories as part of efforts to fix delayed payments and improve the country’s milk supply system.
Speaking during a tour of Nandi County on Sunday, October 18, 2026, Ruto said the government would clear approximately Ksh400 million owed to dairy farmers by the end of this month. Many farmers supplying milk to New KCC have gone two or three months without payment.
“By the end of this month, we want to pay all the debts, the milk ones. There are farmers who have not been paid for two months, three months, we want to pay every farmer,” the president said.
He further directed that from now on, farmers must be paid before the fifth day of every month to stop new debts from building up.
Factories to run their own finances
Ruto also unveiled plans to decentralise New KCC operations. Under the new arrangement, individual factories will manage their own finances instead of depending on the company’s Nairobi headquarters.
He criticised the old system, saying money from milk sales was often used to settle unclear debts decided far from the farmers.
“You know for a long time, KCC was being run from Nairobi, and those who are in Nairobi do not have milk, we are the ones who have the milk,” Ruto said.
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The new model will work like tea and coffee factories, where local management is accountable. Local factory chairmen will be held responsible if payments are delayed or money is mismanaged.
“We have said every factory should manage itself. This one of milk, every KCC factory will now manage itself,” he declared.
Ruto added that the national government would take over any remaining central debts so that individual factories start clean. Officials who fail to manage their factories properly risk being replaced or facing legal action.
The announcement comes at a time when Kenya is facing milk shortages that have affected supplies to processors and raised consumer prices in major towns. The president’s two immediate deadlines , clearing the Ksh400 million by October 31 and ensuring monthly payments before the fifth of each month — will test how quickly the new system can be put into practice.
Details on how the factory-level management will be rolled out and how the outstanding debts will be financed have not yet been released.