GOOD NEWS as KCC Slashes Price of Milk Beginning Today

May 30, 2017

Barely a fortnight after the government subsidized the prices of maize flour, Kenyans are set to get another relief after New Kenya Co-operative Creameries (KCC) announced a price cut on its 500ml milk.

Beginning today, Dairy processors have reduced the price of milk by Sh10 per 500ml packet in the general trade, followed by Supermarkets from June 1.

The drop in cost has been attributed to “slow but gradual increase in raw milk supply that is now up by 20 percent, a consequence of the onset of rainfall being experienced in the major milk producing areas”.

Brookside Dairy and New Kenya Co-operative Creameries also attributed the move to invention of the National Government by allowing importation of duty-free milk powder to help bridge the raw milk shortage.

“The decision has further been informed by the move of the National Government intervention, through a gazette notice, allowing importation of duty-free milk powder to help bridge the raw milk shortage,” said KCC in a statement.

The 500ml KCC milk pack has been retailing at an all time high of Sh60-65 in nearly all retail shops in Nairobi, sparking a public outcry from consumers.

Two weeks ago, Treasury Secretary Henry Rotich removed duty on powdered milk to allow importation of 9,000 tonnes of product to ease the shortage.

Brookside Dairies director of milk procurement, John Gethi said on Tuesday: “The forces driving market correction have commenced, with a major change being the improved supplies from farmers. We will continue to observe the motions in the market and react accordingly. Eventually, the markets are expected to reach an equilibrium level.”

The New KCC faulted the high steep prices to the prolonged drought that ran from December 2016 to May 2017, which is the longest dry spell experienced in the recent past.


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