Trade Committee Urges New KCC To Stop Supplying Milk To Government Agencies That Can’t Pay
James Gakuya
By MKT Reporter
The Committee on Trade, Industry and Cooperatives has called on the New Kenya Co-operative Creameries (KCC) to reconsider supplying milk to government agencies that have failed to settle their debts.
Committee chairperson who is also the Embakasi North MP James Gakuya, emphasized that New KCC, as a business, should not allow its operations to be hindered by government entities that owe substantial amounts, which in turn affects the company’s ability to pay farmers.
“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 during a meeting with Cooperatives Principal Secretary Patrick Kilemi.
During the meeting, the PS who was accompanied by acting New KCC Managing Director Samuel Ichura revealed that milk processor is owed KSh184.3 million by various government ministries.
According to the PS, The Ministry of Defence and the Administration Police Service are the largest debtors, owing KSh49.49 million and KSh32.38 million, respectively.
Other significant debts include KSh14.62 million owed by State House, KSh10.53 million by Kenyatta National Hospital, and KSh6.79 million by The Presidency. The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital owe KSh4.45 million and KSh4.04 million, respectively.
Additionally, the National Security Intelligence Service, the Office of the First Lady, and Nairobi Water and Sewerage Company owe KSh4 million, KSh3.07 million, and KSh2.27 million, respectively. A further KSh52.24 million is owed by other government agencies.
“New KCC is failing to meet it obligations because of supporting government agencies. We need the help of this committee for the outstanding debt to be paid,” said PS Kilemi at the session that was also attended by New Kenya Planters Cooperative Union (New KPCU) Managing Director Timothy Mirugi.
The meeting was convened in response to a statement requested by Eric Muchangi of Runyenjes constituency regarding delayed payments to dairy and coffee farmers by various cooperatives in Embu County.
The PS acknowledged past delays in payments to dairy and coffee farmers but assured the committee that the situation has improved, with payments now up to date until June.
He stated that the remaining payments would be made by the end of the month.
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