, NAIROBI, Kenya, May 29 – New Kenya Co-operative Creameries (KCC) has announced a Sh10 price cut on its 500ml milk pack starting Tuesday.
The price cuts will start in the general trade on Tuesday followed by Supermarkets from June 1.
The company attributed the price reduction to what it described as “slow but gradual increase in raw milk supply that is now up by 20 percent, a consequence of the onset of rainfall being experienced in the major milk producing areas”.
It also attributed the move to invention of the National Government allowing importation of duty-free milk powder to help bridge the raw milk shortage.
The 500ml KCC milk pack has been retailing at Sh60 in nearly all retail shops in Nairobi, as have other milk brands, sparking outcry from consumers.
The company faulted the high steep prices to the prolonged drought that ran from December 2016 to May 2017, which is the longest dry spell so far experienced in the recent past.
“The season caused scarcity of the product at the farm level resulting in a drastic drop by over 50 percent of raw milk being supplied to the company’s milk collection facilities,” a statement issued by the KCC management said.
This, it said, affected the producer price pushing it up from Sh30 to a historic high of Sh43 per litre, which in turn impacted the consumer prices to rise to over Sh60 per 500ml pack of fresh milk.
Additionally, the drought depleted the national strategic milk powder reserves, which had allowed the company to bridge the raw milk shortfall thereby sustaining the availability of milk supply in the outlets.