New KCC transporters addressing the press at a hotel in Mlolongo, Machakos county on October 23, 2026.

More than 100 transporters contracted by New Kenya Co-operative Creameries (New KCC) have appealed to President William Ruto to intervene and help secure payment of debts amounting to more than Sh500 million.

Speaking to journalists in Mlolongo, Machakos County, on Friday, the transporters, led by their national chairman Walter Rotich, said the debt had accumulated over the past year, leaving them unable to service loans and maintain their vehicles.

"We have converged here this morning to appeal to New KCC management. They owe us a lot of money spanning over Sh500 million for the last one year. We have been offering our services transporting milk from various factories and we have not been paid," Rotich said.

The transporters said they had stopped transporting milk and milk products, contributing to the ongoing shortage in the country.

"Our vehicles are parked, so distribution has been halted. This is why milk is not available in our stores and supermarkets," Rotich said.

When reached for comment, New KCC managing director Joseph Choge acknowledged that the company had outstanding liabilities to various parties, including farmers, suppliers and transporters.

"The fact is that the company is dogged by lots of legacy liabilities which the President has committed to have them taken care of by the government as part of a larger re-organisation exercise," Choge told the Star on phone on Friday.

Rotich said some transporters had lost vehicles, houses and other assets through auctions, while others were struggling to meet their financial obligations.

"Many of us have been auctioned. Our vehicles, houses and other assets have been auctioned by financial institutions. Some of our children are not going to school due to lack of school fees," he said.

He appealed to New KCC to honour the payment terms agreed upon in their contracts and said the unpaid invoices had also exposed transporters to tax liabilities.

"My final appeal is that this issue is making KRA come after us because we have raised invoices. We are forced to generate invoices. The moment eTIMS reflects that we have raised an invoice, KRA runs after us since they need their share," Rotich said.

Leonard Mbugua, 67, who said he bought his vehicle with his retirement benefits 17 years ago and had served KCC for 15 years, said the situation had made it difficult to maintain his vehicle and meet his financial obligations.

"We have never gotten to this state. Maintaining the vehicle and sustaining debts especially fuel for a year is impossible," Mbugua said.

"As the elderly, I don't have any source of livelihood. I can no longer raise my grandchildren, pay my workers, or other service providers like mechanics since my vehicle is stalled."

Pauline Mugo, who has served as a transporter for five years, said banks are pursuing her over loans taken to acquire trucks.

"The banks are on us. We have children. Fuel companies are knocking at our doors. As an individual, I have come to a point where there is nothing I can do however much banks knock at my door," Mugo said.

John Mwenda said the group would move to court if the company failed to pay within 21 days from October 24, 2026.

On October 18, President Ruto announced major reforms in the dairy sector while in Kapsabet, Nandi County, including raising the producer price to Sh65 per litre and clearing Sh400 million owed to farmers by the end of October.

"For a long time, KCC was being managed from Nairobi and those in Nairobi have got no milk. We are the ones with milk. If they get money, they go pay debts. We have said each factory should sustain itself the way tea factories sustain themselves under KTDA (Kenya Tea Development Authority) as well as coffee sector," the head of state said.

"We have said that our milk should be paid for by fifth [of the month]. We don't want debts. So, I want to announce to you milk producers, end of this month, we want to pay all debts owed to those in milk sector. There are farmers who have not been paid for 2-3 months. We will pay all farmers. I'm told they are owed about Sh400 million."

The government has injected Sh8 billion into New KCC over the past three years to stabilise its operations.