Nairobi — The New Kenya Planters Cooperative Union (NKPCU) is on the spot after MPs uncovered extensive financial and administrative irregularities including more than KSh1 billion in unsupported expenditure and unlawful staff retention practices.
Appearing before National Assembly's Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) chaired by Navakholo MP Emmanuel Wangwe, NKPCU's top leadership led by CEO Timothy Mirugi was questioned over numerous discrepancies flagged by the Auditor-General in the agency's 2022/2023 and 2023/2024 financial statements.
MPs expressed concern that the accountability lapses undermine an institution at the heart of Kenya's coffee value chain.
The House team inquired on Sh1 Billion in expenditure under the Farm Input Subsidy Programme Sh940M for farm inputs and Sh61M for awareness campaigns which the Auditor-General says lacks adequate supporting documentation.
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"No satisfactory evidence has been presented to justify this massive spending," Othaya MP Wambugu Wainaina noted.
Although NKPCU management insisted they had shared schedules with the Auditor-General, the Committee found the documents incomplete and missing critical verification details such as invoice numbers. MPs described the gaps as serious red flags requiring immediate explanation.
The Committee also questioned Director of Finance and Accounting, Ednah Kerubo, over an unauthorised overspend of KSh73 million. Against an approved budget of KSh452.2 million, NKPCU spent Sh518 M 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, 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.
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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 KSh6 million of the KSh94 million owed had been collected a recovery rate of just 6.4%. 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
