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.
