The Mountain Journal
editor@themountainjournal.co.ke
The New KPCU has been on the spot after the parliament unearthed extensive financial and administrative irregularities of more than Sh 1billion, in unsupported expenditure and unlawful staff retention practices.
National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) chaired by Navakholo MP Emmanuel Wangwe, interrogated New KPCU’ Managing Director Mr Timothy Mirugi over numerous discrepancies flagged by the Auditor-General in the agency’s 2022/2023 and 2023/2024 financial statements.
The committee 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.
“No satisfactory evidence has been presented to justify this massive spending,” Othaya MP Wambugu Wainaina noted during the committee’s sitting.
New KPCU management insisted they had shared schedules with the Auditor-General, but the parliamentary Committee found the documents incomplete and missing critical verification details such as invoice numbers.
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.
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
