Ruto pledges Ksh400 million to clear dairy farmer debts and overhauls New KCC management

President William Ruto announced a Ksh400 million payout to settle unpaid milk dues by end‑October and introduced a before‑the‑5th‑day payment rule and decentralised management for New Kenya Co‑operative Creameries.

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During a tour of Nandi County on 18 October, President William Ruto said the government will pay roughly Ksh400 million owed to dairy farmers who have not received milk payments for up to three months.

The payout is slated for completion by 31 October 2026, covering all outstanding farmer debts as confirmed by sector officials.

To prevent future arrears, Ruto instructed processor management to disburse farmer earnings before the fifth day of every calendar month.

The president also announced a decentralisation of New KCC, shifting financial control from the Nairobi headquarters to individual processing factories, each to operate autonomously.

Local factory boards will be directly accountable for efficiency and timely payments, with the government warning of administrative or legal consequences for mismanagement.

The state will absorb historic corporate debts remaining at the Nairobi headquarters, ensuring each factory starts with a clean balance sheet while farmers focus on milk sales.

These measures build on a 2024 presidential order that set a guaranteed minimum price of Ksh50 per litre for raw milk purchased by New KCC.

The administration’s immediate benchmarks are the Ksh400 million payout by 31 October and enforcement of the before‑the‑5th‑day payment rule across all regional KCC units.