The New Kenya Planters Cooperative Union (NKPCU) is facing intense scrutiny from Parliament after financial audits revealed over KSh 1 billion in expenditure without proper supporting documents. The funds in question were allocated to a critical subsidy programme for coffee farmers, raising alarms about accountability at the heart of Kenya's coffee sector.

This confrontation matters because the unaccounted-for funds were meant to directly support coffee farmers by making farm inputs more affordable. The integrity of the NKPCU, a state corporation mandated to mill, market, and financially support growers, is now under a microscope, with potential ramifications for thousands of families who depend on coffee for their livelihood.

A Billion Shillings in Question

Appearing before the National Assembly’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA), NKPCU’s management was taken to task over findings in the Auditor-General's reports for the 2022/2023 and 2023/2024 financial years. The committee, chaired by Navakholo MP Emmanuel Wangwe, demanded answers for the massive financial gaps.

The audit flagged several key areas of concern regarding the Farm Input Subsidy Programme:

• KSh 940 million for farm inputs lacks adequate supporting documentation.
• KSh 61 million for awareness campaigns is similarly unsupported.
• An additional unauthorised budget overspend of KSh 73 million, where the agency spent KSh 518 million against an approved KSh 452.2 million.

Othaya MP Wambugu Wainaina noted that “no satisfactory evidence has been presented to justify this massive spending.” While NKPCU’s Chief Executive Officer, Timothy Mirugi, and Director of Finance, Ednah Kerubo, insisted they had provided the necessary documents, MPs found them incomplete and missing crucial details like invoice numbers, describing the omissions as serious “red flags.”

Breaches Beyond the Budget

The committee's inquiry is part of its mandate to scrutinise reports from the Auditor-General and ensure that public investments are managed according to sound financial principles. Beyond the financial discrepancies, MPs also raised concerns about administrative issues at the NKPCU, including the unlawful retention of eight officers past the mandatory retirement age without the required approvals.

The NKPCU was established in 2019 to replace the previous union, with a core mission to revive the coffee sector through transparent and efficient farmer-centric services. The questions now being asked by Parliament cut to the core of that mission, challenging whether the institution is living up to its mandate to protect the interests of the Kenyan coffee farmer.

As the committee digs deeper, the future of the subsidy programme and the leadership of the NKPCU hang in the balance. The outcome of this investigation will be a critical test of public accountability and could determine the flow of essential support to a sector vital to Kenya's economy.