Parliament Demands Action as New KCC Struggles with Ksh.184.3 Million in Unpaid Government Debts**
- Dalton Akumu
- Aug 23, 2024
- 1 min read

In a striking revelation, Members of Parliament have urged New Kenya Co-operatives Creameries (KCC) to cease supplying milk to government agencies that have failed to settle a staggering Ksh.184.3 million in unpaid debts. Among the top defaulters are State House, the Ministry of Defence, and the Office of the First Lady, with debts amounting to millions.
During a tense session with the National Assembly Committee on Trade, Industry and Cooperatives, New KCC's Managing Director, Samuel Ichura, and Cooperatives Principal Secretary, Patrick Kilemi, laid bare the severe financial strain the company is under due to the outstanding payments. The largest debts are held by the Ministry of Defence at Ksh.49.49 million, and the Administration Police Service at Ksh.32.38 million. Even State House owes Ksh.14.62 million, while the Office of the First Lady is yet to pay Ksh.3.07 million.
Committee Chairperson and Embakasi North MP James Gakuya did not mince words, advising New KCC to protect its business interests by halting supplies to these agencies until the debts are cleared. “You cannot tell farmers that you can't pay them because government bodies owe you," Gakuya asserted, highlighting the domino effect on the livelihoods of dairy and coffee farmers.
PS Kilemi acknowledged the company's struggles, attributing them to the unpaid government debts, but reassured the committee that measures were being taken to clear the outstanding amounts by the end of the month. This situation casts a spotlight on the financial management challenges within government agencies and raises questions about the sustainability of New KCC’s operations under such strain.























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