‘Stop Supplying Milk To State House’ – MPs Tell New KCC After Ksh.14 Million Debt Accumulation
Members of Parliament have called on the New Kenya Co-operatives Creameries (KCC) to stop supplying milk to government agencies that have not paid their debts.
On Thursday, new KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary Patrick Kilemi appeared before the National Assembly Trade, Industry, and Cooperatives Committee to explain why payments to dairy and coffee farmers had been delayed.
Committee Chairperson and Embakasi North MP James Gakuya stated that the milk processor is owed Ksh.184.3 million by various government agencies.
State House is listed as a debtor, owing the company Ksh.14.62 million.
MPs have asked the New KCC to stop supplying milk to State House over Sh14m debt
— The Eastleigh Voice (@Eastleighvoice) August 23, 2024
This comes as new KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary Patrick Kilemi appeared before the National Assembly's Trade, Industry, and Cooperatives Committee, seeking… pic.twitter.com/ha7jXCc5nC
At the same time, the Office of the First Lady has yet to pay the company Ksh 3.07 million for supplying milk.
The Ministry of Defence and the Administration Police Service have the largest debts, totaling Ksh.49.49 million and Ksh.32.38 million, respectively.
Kenyatta National Hospital (KNH) owes Ksh. 10.53 million, while its private wing owes Ksh. 4.45 million.
In addition, the National Security Intelligence Service owes Ksh.4 million, as does 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,” said MP Gakuya.
“You cannot tell farmers that you can’t pay them because government bodies owe you.”
In response, the PS stated that the milk processor is struggling with its operations due to massive 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 had improved and that the remaining payments would be made by the end of the month.
‘Stop Supplying Milk To State House’ – MPs Tell New KCC After Ksh.14 Million Debt Accumulation
