KENYA – Kenya has stopped the planned sale of the state-run milk processing firm New Kenya Cooperative Creameries Ltd, following an ownership dispute with dairy farmers.
The Privatisation Commission said it will now review the ownership position of the firm before proceeding with the sale.
“There is a dispute with the farmers with regard to the ownership of the company. We are going to identify the actual position in terms of ownership, because everybody is claiming ownership of this company,” said Henry Obwocha, the commission’s chairman.
The government saved New KCC from the brink of insolvency in 2003 at a cost of Ksh547 million ($5.47 million) and earmarked it for privatisation to improve governance and efficiency.
Now, dairy farmers, through the Kenya Dairy Farmers Federation (KDFF), argue that the government cannot claim ownership of the firm because their assets are worth more than the $5.47 million paid out to a few individuals who had taken over the firm.
Source: The East African, The Dairy Site