Members of Parliament have urged the New Kenya Co-operatives Creameries (KCC) to suspend milk deliveries to government agencies that have not cleared their debts.
On Thursday, New KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary Patrick Kilemi.
Appeared before the National Assembly Committee on Trade, Industry, and Cooperatives to address issues related to delayed payments for dairy and coffee farmers.
Committee Chairperson James Gakuya, MP for Embakasi North, revealed that New KCC is currently owed sh.184.3 million by various government agencies.
Among the debtors are State House, which owes sh.14.62 million, and the Office of the First Lady, which has an outstanding balance of sh.3.07 million.
The Ministry of Defence and the Administration Police Service are the largest debtors, with sh.49.49 million and sh.32.38 million owed, respectively.
Additionally, Kenyatta National Hospital (KNH) owes sh.10.53 million, and the hospital’s private wing owes sh.4.45 million.
The National Security Intelligence Service (NSIS) has a debt of Ksh.4 million, and Nairobi Water and Sewerage Company owes Ksh.2.27 million.
Gakuya criticized New KCC for continuing to supply milk to these defaulting agencies, arguing that the company’s financial strain is exacerbated by these unpaid debts.
“New KCC is in business, and no one is forcing you to continue supplying milk to government agencies that still owe you money.
You cannot tell farmers that you are unable to pay them because government bodies owe you,” Gakuya said.
In response, PS Kilemi acknowledged that the company is struggling due to the substantial outstanding debts.
“New KCC is unable to fulfill its obligations because of the debts owed by government agencies.
We need the assistance of this committee to ensure that these debts are settled,” Kilemi stated.
Despite these challenges, Kilemi assured the committee that progress is being made and confirmed that all remaining payments would be completed by the end of the month.
