MPs Urge New KCC to Halt Milk Supply to State House Over Ksh 183M Unpaid Debts
Kenyan lawmakers have urged the New Kenya Co-operative Creameries (KCC) to suspend milk supplies to the State House and other government agencies that have not settled their bills.
This follows the cooperative’s concerns over significant outstanding debts owed by several government offices, including President William Ruto’s.
Cooperatives Principal Secretary Patrick Kilemi, addressing the Trade Committee, explained that these unpaid debts are severely disrupting the co-operative’s operations.
Committee Chair and Embakasi North MP James Gakuya emphasized that New KCC is a business and should not allow non-paying government agencies to compromise its operations.
“New KCC is running a business. You’re not obligated to keep supplying milk to agencies that haven’t cleared their dues,” Gakuya advised PS Kilemi.
Gakuya added, “You cannot justify non-payment to farmers simply because government bodies owe you.”
According to Kilemi, the Ministry of Defence and the Administration Police Service are the largest debtors, owing Ksh49.49 million and Ksh32.38 million respectively.
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Other debts include Ksh14.62 million from the State House, Ksh10.53 million from Kenyatta National Hospital, and Ksh6.79 million from the presidency.
The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital also owe Ksh4.45 million and Ksh4.04 million respectively.
In addition, the National Security Intelligence Service, Office of the First Lady, and Nairobi Water and Sewerage Company are in debt by Ksh4 million, Ksh3.07 million, and Ksh2.27 million respectively.
PS Kilemi appealed to the committee for assistance in recovering the debt, as New KCC’s inability to meet its financial commitments is largely due to government agencies’ delays in payment.
He also highlighted that these payment delays are trickling down, affecting timely payments to dairy and coffee farmers.
MPs Urge New KCC to Halt Milk Supply to State House Over Ksh 183M Unpaid Debts
