Members of Parliament 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 Cooperatives Principal Secretary Patrick Kilemi revealed that various government ministries owe the milk processor Kes 184.3 million.
Appearing before the National Assembly Committee on Trade, Industry and Cooperatives on Thursday, Kilemi listed the Ministry of Defence and Administration Police as the biggest debtors at Kes 49.5 million and Kes 32.4 million respectively.
Other significant debts include Kes 14.62 million owed by the State House, Kes 10.53 million by Kenyatta National Hospital, and Kes 6.79 million by the Presidency.
The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital owe Kes 4.45 million and Kes 4.04 million, respectively.
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The National Security Intelligence Service, the Office of the First Lady, and Nairobi Water and Sewerage Company owe Kes 4 million, Kes 3.07 million, and Kes 2.27 million, respectively.
Other government agencies owe Kes 52.24 million.
“New KCC is failing to meet it obligations because of supporting government agencies,” said PS Kilemi.
The committee convened following Runyejes MP Eric Muchangi's request for a statement 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 paying the monies owed to farmers by the end of the month, acknowledging past delays in payments to dairy and coffee farmers.
