KNTC Boss Pamela Mutua Grilled Over Ksh.16.5B Edible Oils Scandal
Pamela Mutua, the CEO of the Kenya National Trading Corporation (KNTC), was questioned by the Directorate of Criminal Investigations (DCI) on Tuesday regarding her purported involvement in the edible oils scandal, which cost Ksh.16.5 billion.
Senior officials of the State agency, including Ms. Mutua, were arrested and detained by police on Monday evening. They remained in detention throughout the night.
In June of this year, it came to light that consumable oils procured via KNTC were single-sourced from companies owned by individuals with ties to the government.
It all began in October of last year, when KNTC, which is under the Ministry of Investments, Trade, and Industry, received approval from the Cabinet.
Cabinet approved a framework to position the Kenya National Trading Corporation as the cornerstone of state initiatives to establish a price stabilizer for essential household food items to reduce the cost of living, according to the Cabinet memorandum.
“KNTC will leverage on its infrastructure and capacity to help stabilize price swings of essential items that are abnormal and against the public interest.”
Nevertheless, according to a document submitted to the National Assembly, KNTC contracted with single-source companies to import 125,000 metric tons of edible oil.
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The local purchase order was granted to Shehena Trading Commodity Limited, an organization registered in a Dubai-free zone and wholly owned by Invest Africa – FZCO. Its leadership was reportedly Wilfred Saroni, a close associate of Cabinet Secretary Moses Kuria.
Multi Commerce FZC, an additional entity, is reportedly owned by a prominent businessman affiliated with a significant new mall in Eastleigh and is registered in a Dubai-free zone.
Documents of customs entry indicated that KNTC failed to remit the subsequent taxes: import declaration fees (3.5%), customs duty (35%), railway development levy (2.0%), and agricultural food authority levy (20%); as a result, the company incurred a total tax loss of 42.5 percent.
KNTC, similar to KEMSA during the COVID-19 procurement fraud, is currently unable to sell inflated inventory.
Ksh.6 billion will be lost by taxpayers if the state corporation incurs losses and its goal of providing affordable alternative products is in vain.
KNTC Boss Pamela Mutua Grilled Over Ksh.16.5B Edible Oils Scandal
