No more milk supply for state house over unpaid debts.

Members of Parliament have urged the New Kenya Co-operatives Creameries (KCC) to halt milk supplies to government agencies that have not paid their debts. 

New KCC Managing Director Samuel Ichura and Cooperatives Principal Secretary Patrick Kilemi appeared before the National Assembly Committee on Trade, Industry, and Cooperatives to address delayed payments to dairy and coffee farmers.

Committee Chairperson and Embakasi North MP James Gakuya stated that various government agencies owe the milk processor Ksh. 184.3 million. 

State House owes the company Ksh. 14.62 million, and the Office of the First Lady has an outstanding payment of Ksh. 3.07 million for milk supplies. 

The Ministry of Defence and the Administration Police Service have the largest debts, owing Ksh. 49.49 million and Ksh. 32.38 million, respectively.

Kenyatta National Hospital (KNH) owes Ksh. 10.53 million, with the facility’s private wing owing Ksh. 4.45 million. 

Additionally, the National Security Intelligence Service has incurred a Ksh. 4 million debt, and Nairobi Water and Sewerage Company owes Ksh. 2.27 million.

“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 MP Gakuya.

In response, the PS noted that the milk processor is struggling in its operations due to huge amounts of debt.

“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,” said PS Kilemi. 

The PS, however, assured the committee that the situation has improved and reaffirmed that the remaining payments would be made by the end of the month. 

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