Wamuzi News Ke
A devastating Auditor-General’s audit report has exposed a staggering KSh 40.6 million stockpile of unsellable, decaying food at the Kenya National Trading Corporation (KNTC), landing the state agency in the eye of a financial storm.
The report reveals mountains of rice and cooking oil left to rot in warehouses—damaged by overstocking, careless handling and weak internal controls. The food, meant to support the public and strategic commodity programmes, has instead become a liability for taxpayers .
In a scathing indictment, the audit also shows that KNTC liabilities now exceed its assets by KSh 3.2 billion, raising serious concerns about its viability and oversight by its parent ministry .
Sources indicate that stock handling protocols were either ignored or never enforced, allowing perishables to expire while budgets ballooned and operations faltered.
The audit is particularly alarming given that KNTC serves as the government’s anchor agency distributing essential commodities—including rice, edible oil and subsidized fertilizer—to counties and ministries under a Cabinet-approved framework initiated in late 2022 .
Sources close to the audit note this is not an isolated lapse. Past Auditor-General reports have raised months of concerns about unsupported leases, unresolved receivables and inadequate governance—yet systemic weaknesses persist in the corporation’s financial management .
KNTC has previously been implicated in controversies, including a widely publicised Sh 6.6 billion edible oil scandal, where irregular loan arrangements and contract anomalies drew parliamentary scrutiny and public outrage .
The implications are profound:Sh 40.6 million worth of essential food supplies wasted, defeating public food security objectives.KNTC’s finances tipped into virtual insolvency with liabilities surpassing assets by billions.
Internal audit and control architecture appear ineffective, jeopardising future government commodity operations.In sharp reaction, Members of Parliament and oversight bodies are vowing urgent remedial action.
One senior legislator described the findings as a “national disgrace” and demanded accountability from KNTC’s leadership and board.Auditor-General Nancy Gathungu has called for full disclosure of responsible officials, pointing to the breakdown of basic public finance and inventory management practices.
As Kenya faces recurring commodity shortages, waste and poor oversight at KNTC add fuel to an already fiery debate about public sector efficiency and value for taxpayer money.
What to watch next.
Parliamentary discussions on restructuring KNTC operations or management shakeups.Potential forensic audits or criminal investigations into culpable leadership.
Swift disposal and recovery action for ruined stocks—and reform of warehousing protocols.Broader public sector audits to flush out weak controls in other commodity agencies.
Ultimately, the failed food stock and KSh 3.2 billion liability underscore a dire truth: critical institutions charged with national food security and essential commodity distribution may be failing the public they’re meant to serve.
