MPs tell New KCC to stop supplying milk to State House over Ksh.14M debt
Members of Parliament have called on the New
Kenya Co-operatives Creameries (KCC) to stop supplying milk to government
agencies that have failed to settle their debts.
New KCC Managing Director Samuel Ichura and
Cooperatives Principal Secretary Patrick Kilemi on Thursday appeared before the
National Assembly Committee on Trade, Industry and Cooperatives Committee
seeking answers on delayed payments to dairy and coffee farmers.
Committee Chairperson and Embakasi North MP James
Gakuya said the milk processor is owed Ksh.184.3 million by various government
agencies.
State House is listed among the debtors,
owing the company Ksh.14.62 million. At the same time, the Office of the First
Lady is yet to pay the company Ksh.3.07 million for supplying milk.
The Ministry of Defence and the
Administration Police Service have accrued the largest debts with Ksh.49.49
million and Ksh.32.38 million, respectively.
Kenyatta National Hospital (KNH) owes
Ksh.10.53 million while the facility’s private wing owes Ksh.4.45 million.
Additionally, the National Security
Intelligence Service has incurred a Ksh.4 million debt, and Nairobi Water and
Sewerage Company Ksh.2.27 million.
"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 MP Gakuya.
In response, the PS noted that the milk
processor is struggling in its operations due to huge amounts of 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," said PS
Kilemi.
The PS, however, assured the committee that
the situation has improved and reaffirmed that the remaining payments would be
made by the end of the month.
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