Members of Parliament have called on the New Kenya Co-operative Creameries (KCC) to consider ceasing its milk supply to the State House and other government agencies due to outstanding debts. The directive was issued on Thursday after concerns were raised over unpaid bills by several government entities, including President William Ruto’s office.
The situation was highlighted by Cooperatives Principal Secretary Patrick Kilemi during his appearance before the Trade Committee. He revealed that the significant unpaid debts have severely impacted the operations of New KCC, a key player in the country’s dairy industry.
Committee Chairperson and Embakasi North MP James Gakuya emphasized that New KCC operates as a business and should not allow its functions to be compromised by government agencies failing to pay for their milk supplies. “New KCC is in business, and no one compels you to keep supplying milk to government agencies that still owe you money,” Gakuya stated. He further urged the cooperative to prioritize its financial health and the welfare of dairy farmers who rely on timely payments.
According to PS Kilemi, the Ministry of Defence and the Administration Police Service are among the largest debtors, owing Ksh49.49 million and Ksh32.38 million, respectively. Other significant debts include Ksh14.62 million owed by the State House, Ksh10.53 million by Kenyatta National Hospital, and Ksh6.79 million by the presidency.
Additional debts were noted from the Kenyatta National Hospital Private Wing (Ksh4.45 million) and Moi Teaching and Referral Hospital (Ksh4.04 million). The National Security Intelligence Service, the Office of the First Lady, and the Nairobi Water and Sewerage Company also owe Ksh4 million, Ksh3.07 million, and Ksh2.27 million, respectively.
PS Kilemi expressed concern over the delays in payment, which have, in turn, caused delays in disbursing funds to dairy and coffee farmers. He appealed to the Trade Committee for assistance in ensuring the outstanding debts are settled to enable New KCC to meet its obligations.