Kenya Cooperative Creameries (KCC) was started informally by White settler farmers and incorporated in 1932 under the Cooperative Societies Ordinance. KCC’s objective was to enable farmers to have a viable marketing system for their milk and dairy products. White farmers imported grade cattle to boost production.
KCC Was also registered under the Companies Act and retained the dual registration after Kenya became independent in 1963. It established factories and depots in many parts of the country to distribute products and later to accommodate the African farmers and dairy cooperative societies. The wide range of processed products of fresh liquid milk, powder milk, butter, cream, ghee, cheese and yogurt needed elaborate selling and distribution networks in the local and export markets. KCC enjoyed a monopoly status and became a household name.
Trouble for KCC started with the advent of liberalisation, which allowed entry of other actors into the dairy industry.
The competition and low prices of dairy products worsened KCCs performance, particularly in the late 1980s and early 1990s.
Like KFA, KCC was sold to private investors ‘m 2000 after it failed to pay Kshs220 million owed to its employees and a bank loan of Kshs400 million. It was, thus, transformed into a private company
A number of dairy cooperative societies and unions, for example, in Bungoma, Kiambu and Meru, alongside privately owned ﬁrms, including Brookside, Delamere and Spinknit, started dairy processing plants and have since entrenched themselves in the market.
The Narc Government reacquired KCC from the private entrepreneurs and renamed it New KCC to operate under the State Corporations Act. The New KCC has impressively reasserted itself in a bid to restore its previous premier position despite stiff competition.