Government Eases Farmer Burdens: Tax Relief & Strategic Milk Reserve Unveiled
Tuesday, Cooperatives & SME Cabinet Secretary Simon Chelugui declared the elimination of certain taxes and levies imposed on farmers by the government.
The CS stated in a statement that the eliminated tariffs and taxes targeted imported raw materials for animal feeds to reduce production costs.
“As the government, we take this early opportunity to assure our dairy farmers of our unwavering support and commitment to ensuring that the dairy industry continues to be stable,” he stated in a statement shared on his social media pages.
The CS deemed it detrimental to dairy producers because animal fees comprised 60% of the overall expenses associated with milk production.
As part of the initiatives aimed at supporting dairy producers, particularly amid the El Nino season, the Kenya Creameries Corporation (KCC) has been allocated financial resources to assist in the management of excess milk.
In the initial installment, KCC shall receive Ksh500 million, which shall be utilized to powder milk and manage surplus products.
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“This will enable the new KCC to purchase, dry into milk powder, and store the surplus milk as part of the strategic food reserve, and hence even seasonality in supply,” Chelugui stated.
The government has projected that the prolonged period of intense precipitation until January 2024 will yield an additional 50 million liters of milk.
Therefore, all implemented measures will guarantee that the milk is not wasted. A market will also be guaranteed for the produce of the farmers.
Moreover, to facilitate the operation of the new KCC and augment its processing capacity, the government will assist with the moderation program.
The government has allocated Ksh3.8 billion for the implementation of modernization initiatives across different regions of the country.
Runyenjes, Mogotio, Kabianga, Narok, Dandora, Miritini, Eldama Ravine, Eldoret, Sotik, and Kitale Plant have been designated as phase III areas.
Government Eases Farmer Burdens: Tax Relief & Strategic Milk Reserve Unveiled
