NKPCU boss Timothy Murigi on the spot over Sh1billion aunauthorised expenditures
The New Kenya Planters Cooperative Union (NKPCU) is on the spot over unauthorised expenditures amounting to Sh1billion and unlawful staff retention practices.
The National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) chaired by Navakholo Member of Parliament (MP) Emmanuel Wangwe uncovered the massive financial flaws while grilling NKPCU’s top leadership led by CEO Timothy Mirugi.
Murigi was at pains to explain numerous discrepancies flagged by the Auditor-General in the agency’s 2022/2023 and 2023/2024 financial statements.
Openly infuriated MPs expressed concern that the accountability lapses undermine an institution at the heart of Kenya’s coffee value chain.
“No satisfactory supporting documentation has been provided for this massive expenditure,” Othaya MP Wambugu Wainaina noted, citing audit findings.
In what appeared like an attempted cover up by the Murigi led team, they presented incomplete and lacking key verification details, including invoice numbers as supporting documents.
The MPs questioned the legitimacy of the expenditure, describing the gaps as “red flags requiring immediate clarification.”
The House team inquired on Sh1billion in expenditure under the Farm Input Subsidy Programme, Sh940million for farm inputs and Sh61million for awareness campaigns which the Auditor-General says lacks adequate supporting documentation.
“No satisfactory evidence has been presented to justify this massive spending,” Othaya MP Wambugu Wainaina noted.
At the centre of the inquiry was Sh1,001,336,765 in unsupported expenditure under the Farm Input Subsidy Program, Sh940,327,427.29 for farm inputs and Sh61,009,346.20 for awareness campaigns in coffee-growing counties.
Further, the committee also questioned Director of Finance and Accounting, Ednah Kerubo, over an unauthorised expenditure of Sh73million.
Against an approved budget of Sh452.2 million, NKPCU spent Sh518million without permission to exceed the ceiling.
Another issue drawing sharp criticism was the illegal retention of eight officers beyond the mandatory retirement age of 60 years, without approval from the Head of Public Service.
Management defended the extensions, citing the need for specialised skills to operate milling equipment inherited from the defunct KPCU.
“Operational necessity cannot override the law formal approval procedures must always be followed,” Wangwe stressed, adding that concerns also emerged over ethnic imbalance within the institution, with nearly half of NKPCU staff drawn from one ethnic community.
Ndhiwa MP Martin Owino said the agency must reflect the face of Kenya, urging the development of a clear recruitment policy to promote diversity and inclusivity.
The Committee further flagged longstanding receivables and the unauthorised diversion of project funds to a processing company instead of farmers or coffee inputs.
NKPCU admitted it did not seek approval from the National Treasury, prompting the committee chair to caution that the matter may require the intervention of the Cabinet Secretary.
On debt recovery, MPs noted that only Sh6million of the Sh94million owed had been collected a recovery rate of just 6.4 per cent. The CEO was directed to submit a comprehensive schedule of all debtors.
“Every shilling meant for our coffee farmers must be used transparently and responsibly. Coffee is Kenya’s next gold opportunity, and accountability remains paramount,” Wangwe reiterated
Shockingly, the lawmakers also flagged longstanding receivables and unauthorised diversion of funds to a processing company, originally meant for farmers or coffee inputs and NKPCU admitted it never obtained approval from the National Treasury to reallocate project funds.
“This is a serious matter that may warrant the intervention of the Cabinet Secretary,” Wangwe noted.
