A cloud of suspicion hangs over the New Kenya Planters Cooperative Union (NKPCU) after lawmakers uncovered a Ksh1 billion hole in its subsidy program accounts.

This isn't just about questionable bookkeeping. The inquiry by the National Assembly's Public Investment Committee on Social Services, Administration, and Agriculture raises urgent concerns about the potential loss of taxpayer money meant to support coffee farmers. The probe puts the integrity of national subsidy programs under a harsh spotlight, especially following recent audit reports that found similar subsidy schemes for maize and fertilizer were ineffective due to poor planning and execution.

A Trail Gone Cold

During a heated session, the NKPCU's top management, led by CEO Timothy Mirugi, was grilled over discrepancies flagged in the Auditor-General's reports for the 2022/2023 and 2023/2024 financial years. At the heart of the dispute is Ksh1 billion ($7.7 million approx.) spent under the Farm Input Subsidy Programme, which lacked adequate supporting documents. This amount included Ksh940 million for farm inputs and Ksh61 million for awareness campaigns.

Though the management insisted it had provided the necessary schedules, the committee, chaired by Navakholo MP Emmanuel Wangwe, found the documents incomplete and missing critical details like invoice numbers. “No satisfactory evidence has been presented to justify this massive spending,” Othaya MP Wambugu Wainaina noted, describing the gaps as serious red flags.

Systemic Failures Exposed

The committee's scrutiny revealed other significant problems at the state-run union. Director of Finance and Accounting, Ednah Kerubo, was questioned over an unauthorized budget overrun of Ksh73 million. The agency spent Ksh518 million against an approved budget of Ksh452 million without seeking the required approvals to exceed the ceiling.

Further criticism was directed at the unlawful retention of eight public officers beyond the mandatory retirement age of 60. MPs argued this move denied opportunities to younger, qualified Kenyans.

Key questions the committee is demanding answers for include:

• A complete list of all beneficiaries under the disputed expenditure.
• Proof of delivery and proper invoicing for all subsidized goods.
• Justification for the Ksh73 million budget overrun.
• The legal basis for retaining officers past the retirement age.

The inquiry into NKPCU is the latest in a series of parliamentary probes into the management of public funds, reflecting a broader push for accountability in government expenditure. The nation now watches to see if the billion-shilling question will be answered or if it will vanish into the annals of unresolved public fund scandals.