A parliament committee has ordered the Kenya Co-operatives Creameries (KCC) to stop supplying milk to the State House and the office of the First Lady over a combined debt of Ksh18.3 million.
In their recommendation, the Committee on Trade Industry and Cooperatives chairperson MP James Gakuya stated that KCC’s activities should not be hindered by government agencies that are failing to pay the debts owed.
“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 said during the meeting which was attended by the Ministry of Cooperatives Principal Secretary Patrick Kilemi.
Kilemi revealed that milk processor is owed Ksh184.3 million by various government ministries.
The Ministry of Defence and the Administration Police Service are the largest debtors, owing Ksh49.49 million and Ksh32.38 million, respectively.
Similarly, the State House and the Office of the First Lady owed KCC a combined sum of Ksh18.3 million. Other institutions in debt are Kenyatta National Hospital with Ksh10.53 million, and Ksh6.79 million by The Presidency. The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital owe Ksh4.45 million and Ksh4.04 million respectively.
The National Security Intelligence Service owes Ksh4 million, Nairobi Water and Sewerage Company owes Ksh2.27 million and Ksh52.24 million is owed by other 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,” PS Kilemi lamented.
The meeting was convened after dairy farmers raised concerns over the delayed payment of milk supplied to KCC.
