The New Kenya Co-operative Creameries (New KCC) had an asset base of Sh4.8 billion as at February 2014, a due diligence report on the planned privatisation of the milk processor shows.

The draft report dated February 20, 2014 was prepared by a consortium of firms led by Standard Investment Bank (SIB).

Other firms involved in drafting the report include Deloitte Consulting Limited, Mboya and Wangongu Advocates, Mereka and Co Advocates, Clean Earth limited and Regent Valuers International (K) Limited.

The report values New KCC land, comprising 74 properties, at Sh1.4 billion.

Its buildings are valued at Sh1.64 billion while plant and machinery, including 22 factories and cooling plants, are worth Sh1.494 billion.
Motor vehicles are valued at Sh254.5 million while furniture and office equipment are worth Sh14.7 million.

“We, the undersigned, are pleased to release our updated high level due diligence report for the preparation stage dated February 20 with respect to the privatisation of New Kenya Cooperative Creameries that the SIB consortium is acting as consultant/advisor.

“This report supersedes any other versions that may have been circulated early and should be read together with the privatisation options report of the same date,” the document, signed by SIB managing director James Wangunyu, reads.

The consortium lists 12 prime properties which were not valued for various reasons. The plots that initially belonged to New KCC have either been allocated to third parties or their ownership is in dispute.

Some of the disputed properties are in Majengo area of Kitui municipality. They were re-allocated to the Ministry of Housing and three buildings developed on them.

The consortium said it was denied access to the Spring Valley property whose records are missing.

It was also denied access to the property LR No 37/371 in Upper Hill, Kiambere road, which is being developed by a third party.

Another plot in the same area has homes which have been sold to third parties.

Similarly, the consortium could not access plots LR No 37/544, LR No 37/457, LR No 37/458 and LR No 37/460 — all located in Nairobi West. Ownership records for the properties are missing.

Property LR No 3734/87 located on Convent Drive, Nairobi, is registered in the name of Kenevasta Limited and is being developed.

A parcel of land, No 254/XVL177 in Ol Kalou Town, has been developed by a third party while an un-surveyed plot in Kutus Township has been subdivided and allocated to third parties.

In Thika Town, an un-surveyed plot does not appear on the map and could therefore not be located by the consortium.

The data is contained in a report tabled in Parliament last week as part of findings by the Agriculture committee which scrutinised a public petition filed by Deputy Speaker Joyce Laboso on the planned privatisation of New KCC.

Source: Business Daily

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