Parliament Urges KCC to Cut Milk Supply to State House and 9 Others

The Kenyan Parliament has taken a decisive stance on the financial challenges facing the New Kenya Co-operative Creameries (KCC).

Members of Parliament have instructed the cooperative to consider ceasing milk supply to government agencies that have failed to settle their outstanding debts, including State House. This directive emerged during a session of the Trade Committee, where Cooperatives Principal Secretary Patrick Kilemi highlighted the significant operational hurdles caused by these unpaid accounts. Committee Chairperson James Gakuya, representing Embakasi North, emphasized that New KCC’s business operations should not be impeded by non-paying government entities. He stressed the importance of maintaining the cooperative’s financial integrity, particularly in relation to its obligations to farmers.

The largest debtors are identified as the Ministry of Defence and the Administration Police Service, with substantial amounts also owed by various other government institutions, including State House, Kenyatta National Hospital, and the presidency. The financial strain on New KCC has had far-reaching consequences, affecting its ability to fulfil its commitments to dairy and coffee farmers. This situation underscores a broader issue within the public sector, where delayed payments can significantly disrupt essential services and operations.

By advocating for the halt of supplies to non-paying entities, the MPs aim to prompt timely settlements and ensure the cooperative’s continued operations without further financial distress. This move is expected to catalyze a more responsible approach to fiscal management among government agencies. The situation raises important questions about the sustainability of current government procurement methods and the necessity for reforms to guarantee prompt payments to suppliers. The financial health of institutions like New KCC is vital for the stability of Kenya’s agricultural sector and, by extension, the national economy.

Addressing the issue of unpaid debts is crucial not only for supporting this individual cooperative but also for safeguarding the livelihoods of thousands of farmers and maintaining the consistent supply of essential goods to the public. As a cornerstone of Kenya’s dairy industry, New KCC plays a pivotal role in providing a stable market for dairy farmers and ensuring the distribution of milk and dairy products across the country.