Ruto and First Lady Rachel Flagged for Ksh 24M Unpaid Milk Debt

In a hurry? Here’s a quick summary…

• MPs have directed New Kenya Co-operative Creameries (KCC) to halt milk supplies to State House and other government agencies that have unpaid debts, including President William Ruto’s office.
• The unpaid debts, totaling millions from various government bodies, are severely affecting New KCC’s operations, hindering its ability to pay dairy farmers.

On Thursday, Members of Parliament urged the New Kenya Co-operative Creameries (KCC) to consider halting milk supplies to State House and other government agencies that are unable to pay their debts. 

This directive follows concerns raised by the Co-operatives Creameries about significant unpaid debts owed by several government bodies, including the office of President William Ruto.

Cooperatives Principal Secretary Patrick Kilemi, while addressing the Trade Committee, highlighted the detrimental impact these unpaid debts have had on the cooperative’s operations. 

The committee, led by Chairperson and Embakasi North MP James Gakuya, emphasized that New KCC operates as a business and should not allow its functions to be disrupted by government entities failing to pay for milk supplies.

Read Also:

Jimi Wanjigi Arrested After Voluntarily Presenting Himself at DCI Office

Eldoret Residents Reveal Losses of Millions in Church-Linked Investment Scam

Father Kills Two Children, Dies by Suicide

“New KCC is in business, and no one compels you to keep supplying milk to government agencies that still owe you money,” Gakuya stated, addressing PS Kilemi. 

He further added, “You cannot tell farmers that you can’t pay them because government bodies owe you.”

According to PS Kilemi, the Ministry of Defence and the Administration Police Service are the largest debtors, with outstanding amounts 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, and Ksh6.79 million by the presidency.

The Kenyatta National Hospital Private Wing and Moi Teaching and Referral Hospital also have outstanding debts of Ksh4.45 million and Ksh4.04 million, respectively. Additionally, the National Security Intelligence Service, the Office of the First Lady, and the Nairobi Water and Sewerage Company owe Ksh4 million, Ksh3.07 million, and Ksh2.27 million, respectively.

PS Kilemi expressed the dire consequences of these unpaid debts, noting that New KCC is struggling to meet its obligations due to the financial strain caused by supporting these government agencies. 

“We need the help of this committee for the outstanding debt to be paid,” Kilemi urged, underlining the necessity for immediate action to resolve the issue.