Members of Parliament have issued a stern directive to the New Kenya Co-operatives Creameries (KCC) to halt milk supplies to government agencies that have failed to settle their outstanding debts.
The move comes amid growing concerns over delayed payments to dairy and coffee farmers, which have significantly affected the operations of the state-owned milk processor.
New KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary Patrick Kilemi appeared before the National Assembly Committee on Trade, Industry and Cooperatives on Thursday to address the issue of delayed payments.
The committee, chaired by Embakasi North MP James Gakuya, was informed that the milk processor is owed a staggering Ksh.184.3 million by various government entities.
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Among the biggest debtors is the Ministry of Defence, which owes Ksh.49.49 million, followed by the Administration Police Service with a debt of Ksh.32.38 million.
State House is also listed as a debtor, with an outstanding payment of Ksh.14.62 million, while the Office of the First Lady owes Ksh.3.07 million.
Other notable debts include Ksh.10.53 million owed by Kenyatta National Hospital (KNH), with an additional Ksh.4.45 million from the facility’s private wing.
The National Security Intelligence Service has an unpaid bill of Ksh.4 million, and Nairobi Water and Sewerage Company owes Ksh.2.27 million.
Expressing concern over the situation, MP James Gakuya emphasized that the New KCC is a business entity and should not be forced to continue supplying milk to agencies that have not honored their financial obligations.
“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,” Gakuya stated.
In response, PS Patrick Kilemi acknowledged that the New KCC is struggling to meet its obligations due to the massive debts owed by 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,” Kilemi explained.
However, PS Kilemi assured the committee that the situation is gradually improving and committed to ensuring that the remaining payments would be cleared by the end of the month.
