Kenyatta family owned Brookside Dairy Limited has announced plans to shut down its main branch in the Coast Region.
The dairy processing company highlighted hard economic times as the main reason why they are going to close the regional base located in Taita Taveta.
As told by Ntv Kenya, Brookside dairies failed to compete effectively with another milk processor in the area.
The largest milk processor in Kenya has been buying a litre of milk at ksh27 while their main competitors has been purchasing the same litre at ksh33.
With many farmers opting for the Brookside rival, the company has seen its operation scale down significantly remaining with the choice to close their office in that end.
Farmers who supply the company with milk have been issued with a notice that their produce will only be collected this month of February.
However, Taita County government has began talks with Brookside to see if they can persuade the company to remain in the region.
The devolved unit lament that the closure of the milk processor may negatively affect the economy of the region.
At the same time, the county government believes notice given to farmers is very short and should have been at least three months.
Brookside joins a growing list of other companies scaling down their operation to cut cost or even closing their business.
Economists have attributed this an unfriendly business environment.
High cost of production and overtaxing businesses and some products have also been named as reasons for current economic strains for many companies.
The closure of the once giant Nakumatt Supermarket towards the end of last year indicated that all was not well for the country’s economy.