Members of Parliament (MPs) have called on the New Kenya Co-operative Creameries (KCC) to consider halting supply of milk to the State House and other government agencies.
In a statement on Thursday, August 22, the Committee on Trade, Industry, and Cooperatives proposed this action due to the accumulated debts owed by these agencies.
“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,” the statement read.
At the meeting, PS Kilemi, accompanied by acting New KCC Managing Director Samuel Ichura, disclosed that various government ministries owe the corporation Ksh184.3 million debt for products supplied by New KCC.
According to the PS, the Ministry of Defence and the Administration Police Service are the largest debtors, with Ksh49.49 million and Ksh32.38 million debt, respectively.
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Other significant debts include Ksh14.62 million owed by State House, Ksh10.53 million by Kenyatta National Hospital (KNH), and Ksh6.79 million by the Presidency.
Additionally, the Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital owe Ksh4.45 million and Ksh4.04 million, respectively.
Consequently, the committee Chairperson, Hon. James Gakuya (Embakasi North), during a meeting with Cooperatives Principal Secretary Patrick Kilemi stressed that New KCC, as a business, should not let its operations be compromised by government entities.
His suggestion stemmed from the fact that substantial amounts owed by the government agencies affect 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 Hon. Gakuya .
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MPs mention Other Debtors
Furthermore, 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.
At the same time, PS Kilemi who was speaking at the session that was also attended by New Kenya Planters Cooperative Union (New KPCU) Managing Director Timothy Mirugi revealed that Ksh52.24 million is owed by other government agencies.
“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 meeting was convened in response to a statement requested by Hon. Eric Muchangi (Runyenjes) regarding delayed payments to dairy and coffee farmers by various cooperatives in Embu County.
However, PS Kilemi acknowledged previous delays in payments to dairy and coffee farmers but assured the committee that the situation has improved, with payments now current up to June.
As such, he stated that the remaining payments would be completed by the end of the month.
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