MPs Want Halt Of KCC Milk Supply To State House Over Sh14M Debt

Lawmarkers are now pushing for the New Kenya Co-operative Creameries (KCC) to reconsider supplying milk to government agencies that have failed to settle their debts.

This is after it emerged the milk processor is owed Sh184.3 million by various government ministries.

Cooperatives Principal Secretary Patrick Kilemi listed the Ministry of Defence and Administration Police as the biggest debtors at Sh49.5 million and Sh32.4 million respectively.

He made he revelation during an appearance before the National Assembly Committee on Trade, Industry and Cooperatives on Thursday,

State House debt

Other significant debts include Sh14.62 million owed by State House, Sh10.53 million by Kenyatta National Hospital, and Sh6.79 million by the Presidency.

The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital owe Sh4.45 million and Sh4.04 million respectively.

Additionally, the National Security Intelligence Service, the Office of the First Lady, and Nairobi Water and Sewerage Company owe Sh4 million, Sh3.07 million, and Sh2.27 million, respectively.

Other government agencies owe Sh52.24 million.

“New KCC is failing to meet it obligations because of supporting government agencies,” said PS Kilemi while urging the comittee to intervene.

The committee convened following a request for a statement by Runyejes MP Eric Muchangi regarding delayed payments to dairy and coffee farmers by various cooperatives in Embu County.

Committee Chairperson James Gakuya emphasized that New KCC, as a business, should not allow government entities that owe substantial amounts to hinder its operations, affecting 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 the Embakasi North MP .

PS Kilemi committed to the payment of monies owed to farmers by the end of the month acknowledging past delays in payments to dairy and coffee farmers.

The Cooperative Principal Secretary assured the House team that the situation has improved, with payments now up to date until June.