The milk processing capacity of two New KCC plants at Eldoret and Kitale is set to go up in the next two weeks following purchase of new machines and completion of repair work on existing plants.

The Minister of Cooperative Development Joe Nyagah said both plants would soon be able to process 700,000 litres of milk a day up from 400,000 litres, thereby relieving local farmers the burden of selling their milk.

Speaking in Eldoret during the closing ceremony of ASK show North Rift region, the minister encouraged farmers to increase milk production, noting that the government had put in place adequate measures to ensure the milk glut problem does not recur.

The minister observed that the milk glut started after farmers had heeded a government campaign to increase milk production but unfortunately New KCC did not have the capacity to meet the supply demand.

He said following President Mwai Kibaki recent directive to the ministries of Agriculture, Livestock and Cooperatives to work together to address the issue, his ministry had submitted a cabinet paper and was awaiting for funds from the treasury in order to implement its proposals.

Privatization

He said importation of milk powder had been banned as part of measures to protect local milk market.

Nyagah added that New KCC would be put up for sale and consultations were in top gear between the Treasury and Ministry of Cooperatives to sell shares to milk farmers at an affordable price.

He announced his ministry will soon start sensitization campaigns to educate farmers on the forthcoming privatization of New KCC.

"If we allow individuals to buy it, only the the rich will buy it at expense of farmers. We shall encourage farmers to form cooperatives for the purpose of buying the company", he said.

He urged New KCC to explore the regional markets such as southern Sudan and Congo. He further urged the company to employ qualified managers who understood the dynamics of the regional markets.