Members of Parliament have urged the New Kenya Co-operative Creameries (KCC) to consider stopping the supply of milk to State House and other government agencies due to unpaid debts. This proposal was put forth by the Committee on Trade, Industry, and Cooperatives on August 22, after it was revealed that various government entities owe the New KCC a total of Ksh184.3 million.
During a committee meeting, Principal Secretary Patrick Kilemi, accompanied by acting New KCC Managing Director Samuel Ichura, disclosed that the Ministry of Defence and the Administration Police Service are the largest debtors, with outstanding debts of Ksh49.49 million and Ksh32.38 million, respectively. Other significant debts include Ksh14.62 million owed by State House, Ksh10.53 million by Kenyatta National Hospital (KNH), and Ksh6.79 million by the Presidency.
Hon. James Gakuya, Chairperson of the Committee and MP for Embakasi North, emphasized that New KCC, as a business, should not allow its operations to be compromised by these unpaid debts. He pointed out that the corporation’s ability to pay farmers is being adversely affected, saying, "New KCC is in business, and no one compels you to keep supplying milk to government agencies that still owe you money."
Other government bodies, including the National Security Intelligence Service, the Office of the First Lady, and Nairobi Water and Sewerage Company, also have significant outstanding balances, with debts of Ksh4 million, Ksh3.07 million, and Ksh2.27 million, respectively. PS Kilemi added that an additional Ksh52.24 million is owed by various other government agencies.
The meeting was prompted by a statement from Hon. Eric Muchangi (Runyenjes), concerning delayed payments to dairy and coffee farmers in Embu County. While PS Kilemi acknowledged previous payment delays, he assured the committee that the situation has improved, with payments now up to date as of June, and the remaining balances expected to be cleared by the end of the month.
The MPs’ call to action reflects growing frustration over the impact of unpaid government debts on the operations of New KCC and its ability to support farmers, highlighting the need for prompt settlement to ensure the stability of the dairy sector.