The Public Investments Committee on Social Services, Administration and Agriculture has raised concern over serious accountability failures at the New Kenya Planters Cooperative Union. MPs questioned the agency’s management over more than one billion shillings in unsupported spending and employment irregularities flagged by the Auditor General.
NKPCU leadership, led by Chief Executive Officer Timothy Mirugi, appeared before the Committee to respond to issues in the organisation’s latest financial statements. Lawmakers said the lapses weaken trust in an institution expected to support the revival of the coffee industry.
An expenditure of KSh1,001,336,765 under the Farm Input Subsidy Program was at the centre of the inquiry. This included KSh940,327,427.29 for farm inputs and KSh61,009,346.20 for awareness campaigns in coffee-growing counties. MPs found gaps in the supporting documents provided, including missing invoice numbers and incomplete records.
The Committee also questioned Director of Finance and Accounting Ednah Kerubo over an unapproved budget overrun of KSh73 million. Against an allocation of KSh452,200,000, the institution spent KSh518,365,837 without authorization. Members said this signaled weak financial controls.
Leadership faced further scrutiny for keeping eight employees past the mandatory retirement age of 60 without the required approval. The CEO said the staff were needed to operate specialized milling equipment from the former KPCU, but MPs insisted such extensions must follow procedure.
Lawmakers also highlighted concerns about ethnic imbalance in staffing. Nearly half of the employees come from one community. Members said NKPCU must establish a recruitment framework that ensures diversity.
Auditors further raised queries over receivables and unauthorised diversion of project funds to a processing company. NKPCU said approval had not been obtained from the National Treasury. MPs warned that this could require action at the ministerial level.
On debt recovery, only KSh6 million out of KSh94 million owed to the agency has been collected. The Committee directed the CEO to present a full list of debtors and progress on recoveries.
The Committee issued instructions requiring NKPCU management to submit additional documentation within two weeks. These include board appointment records, payment voucher details for allowances and lists of outstanding debts. All documents must also be shared with the Auditor General.
Hon Emmanuel Wangwe said Parliament expects transparent use of resources allocated to support farmers and promote growth in the coffee sector. He said accountability is necessary to unlock the potential of coffee as a major income source for the country.
