The National Assembly's Public Investment Committee on Social Services, Administration, and Agriculture has lifted the lid on major financial and administrative irregularities at the New Kenya Planters Cooperative Union (NKPCU).
The committee, which grilled NKPCU CEO Timothy Mirugi among other members of the union's management, expressed concern over multiple anomalies that were highlighted by the auditor general in the cooperative’s 2022/2023 and 2023/2024 financial statements.
The committee specifically questioned Mirugi on Ksh1 billion of unsupported expenditure under the Farm Input Subsidy Program. This included Ksh940 million for farm inputs and Ksh61 million for awareness campaigns in coffee-growing counties.
"NKPCU management insisted that they had shared supporting schedules with the Auditor-General, but MPs found the documents to be incomplete and lacking key verification details, including invoice numbers," Parliament said.
"Members questioned the legitimacy of the expenditure, describing the gaps as “red flags requiring immediate clarification,” it added.
Additionally, the committee grilled the union’s Director of Finance and Accounting, Ednah Kerubo, for overspending by KSh73 million beyond the approved budget of KSh452 million.
"The Committee questioned Ms Ednah Kerubo, the Director of Finance and Accounting, over the unauthorised budget overrun of Ksh73 million. Against a budget of Ksh452,200,000, the agency spent Ksh518,365,837 without seeking approval to exceed the ceiling," parliament said.
The committee further raised concerns over the unlawful retention of eight public officers at the cooperative beyond the mandatory retirement age of 60, without the required green light from the Head of Public Service.
According to the members of parliament, the move denied opportunities to young Kenyans who are equally qualified for the positions.
“Operational necessity does not override the law. Extending employment beyond 60 requires formal approval, which was not sought,” said Navakholo MP Emmanuel Wangwe, who also chairs the committee.
In its defence, the management of the union said that the officers were still competent and experienced in the operation of the union, particularly in operating sophisticated machinery.
“The retention was necessary to maintain operations involving specialised coffee processing equipment,” Murigi said.
