Members of Parliament have instructed the New Kenya Co-operative Creameries (KCC) to halt milk supply to the State House and other government agencies that have pending bills worth Ksh184.3 million.
This is after the New KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary (PS) Patrick Kilemi appeared before the National Assembly Committee on Trade, Industry, and Cooperatives on August 26 to address concerns about delayed payments to dairy and coffee farmers.
Committee Chairperson and Embakasi North MP James Gakuya stated that the milk processor is owed Ksh184.3 million by several government agencies.
The Ministry of Defence and the Administration Police Service have the largest outstanding debt, standing at Ksh49.49 million and Ksh32.38 million, respectively.
State House has an unpaid balance of Ksh14.62 million while the Office of the First Lady owes Ksh3.07 million.
Furthermore, Kenyatta National Hospital (KNH) has a debt of Ksh10.53 million, with its private wing owing Ksh4.45 million. Additionally, the National Security Intelligence Service has accumulated a debt of Ksh4 million, and Nairobi Water and Sewerage Company owes Ksh2.27 million.
Moi Teaching and Referral Hospital also has a debt of Ksh4.04 million.
Gakuya emphasized that New KCC is a business and should not let its operations be obstructed by government entities failing to pay for supplied milk.
“New KCC is in business, and no one compels you to keep supplying milk to government agencies that still owe you money. You cannot tell farmers that you can’t pay them because government bodies owe you,” said Gakuya.
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PS Kilemi additionally pointed out that the milk processor is facing operational challenges due to the significant debt.
“New KCC is failing to meet its obligations because of supporting government agencies. We need the help of this committee for the outstanding debt to be paid,” he said.
The PS, however, reassured the committee that the situation has improved and confirmed that the remaining payments would be completed by the end of the month.
By Frank Mugwe
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