Saturday, November 07, 2009

KCC: A historical perspective

In 1990, Egerton University upgraded its Dairy Technology Diploma to a degree course. The BSc Dairy Science & Technology was custom-designed to train 'future KCC managers'. The first batch of the 8-4-4s who had chosen a UoN Food Science found ourselves at Egerton. We were 26 in number. I was the only one from the RVP. In 1992, May to be precise, then Minister for Co-operatives, the late Kamwithi Munyi, ammended the Act that had hitherto given KCC a monopoly. The Kenya Dairy Board lost its teeth. Imports of dairy products came in, including products with radioactive material, that Ukrainian milk powder contaminated by the Chernobyl Nuclear disaster of Apr 1986.

Among the loosers were the farmers, who, without knowing also contributed to the demise of KCC. I wrote my term paper on this liberalisation and its impact on KCC and farmer payments. I am sorry that I cannot locate the hard copy at the moment. However, apart from a free-for-all- importation of cheap and subsidised milk and milk products, farmers were doing what they continue to do. In the morning, they'd supply milk to KCC, but either due to lack of knowledge or merely because they were trying to make a kill, they took their midday and evening milk on bicycle to Eldoret. They were selling full fat raw milk to the same target consumer to whom KCC was meant to sell processed milk, The farmer's milk was costing half the prize of the processed milk from KCC. This hawking was allowed because Munyi's amendment made 'hawking' of milk legal. For with it, the Kenya Dairy Board (KDB) could not impound any unprocessed milk.


KCC was collapsing. Chebelyon was at one time the Chair, Raymond Moi was the de facto head and supplies committee's in-charge. He was running the show as Nathaniel was busy elsewhere. It was during this time that a company, Katestai Ltd, of Tony Ketter (actually John Chumo) and David arap Bett (who was a director of KCC) were doing proxy business for Raymond. They supplied what I have called at in this blog 'more toilet paper than the milk supplied by farmers'.

When KCC was faced with collapse, and after several 'interventions' by Moi who could 'order KCC' in public barazas to pay the farmers (which was always instantly obeyed!), a meeting a meeting was called at Afraha Stadium. As a future manager in KCC my colleagues and I attended. In that meeting, Mark Kiptarbei arap Too proposed, apparently having had prior discussions with Moi et al, that KCC be disbanded and a new entity KCC2000, be formed instead. This KCC2000 was to inherit all the assets from KCC, but no liabilities. Technically, as a 'dead' entity, KCC was free from the law. You all know who owned KCC2000 and what it was doing to farmers.

Yes Kibaki disbanded KCC2000 and I think MO1 walked away with some 400m or something like that. If I am not wrong, that money is still stuck with a lawyer, and Mo1 has since sued the said lawyer to 'recover his money'. Remember that while these guys were raping KCC, Mark Too was busy transforming KGGCU back to KFA and then back to KGGCU. In between that, KGGCU/KFA assets including houses (like the one Mark has at Milimani in Nakuru) was changing hands. Why do we want to die for these crooks, eti 'our own', who owns who? They own you or what. Did I care to say that in the thick of the confussion, one WSR imported maize, yes the same commodity that farmers in Ziwa produce. I love you Kalenjiin, you are 'ours'.

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