Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Nyagah ejects New KCC boss

NAIROBI Kenya Dec 1 – Cooperatives Development Minister Joseph Nyagah has declined to renew the contract for New Kenya Cooperative Creameries (New KCC) managing director Francis Mwangi despite a major turnaround of the company.

A letter dated November 30 sent to the board and copied to Mr Mwangi says he should hand over to the company secretary Milka Gathoni Mugo after the expiry of his three-year contract.

“In the meantime, the board should start the process of recruiting a new Chief Executive Officer,” Mr Nyagah’s letter states.

Insiders say the refusal to renew Mr Mwangi’s contract comes despite recommendations made to extend it.

He is credited with managing New KCC to post a pre-tax profit of Sh500 million in 2008-2009.

Early this year, the company presented a dividend of Sh30 million to the government signalling a departure from years of financial decline that saw it collapse in the 1990s due to previous gross mismanagement.

An assessment of the company’s performance says the positive results were achieved despite a drop in overall milk production in the country due to prolonged drought.

“Overall, over the last three years, our profit before tax has grown by 115 percent,” the analysis says.

During the same period, milk intake grew by 29 percent from an annual average of 84 million litres to 108 million litres.

Advertisement. Scroll to continue reading.

Between 2006/2007, the company paid out Sh2 billion to farmers in 12 months which rose to Sh2.5 billion in 2008-2009 marking a 14 percent growth.

After making losses for almost a decade, KCC was sold to a group of private investors in 2000 at Sh447 million which was way below the Sh2 billion valuation. 

The government bought KCC 2000 for Sh547 million in the following year after the NARC regime took over power.

The company is currently paying milk suppliers Sh24 per litre, up from Sh8 paid in six years ago.

New KCC controls a market share of 40 percent and has an average milk intake of 450,000 litres per day.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...