MPs Uncover Major Financial, Administrative Irregularities at Kenya Planters Cooperative Union

MPs Uncover Major Financial, Administrative Irregularities at Kenya Planters Cooperative Union

Nairobi, Kenya – The National Assembly’s Public Investment Committee on Social Services, Administration, and Agriculture has exposed significant financial and administrative irregularities at the New Kenya Planters Cooperative Union (NKPCU), raising alarm over accountability in one of the country’s oldest agricultural institutions.

The revelations came during a parliamentary grilling session on Thursday, where NKPCU Chief Executive Officer Timothy Mirugi and senior management were questioned over anomalies flagged by the Auditor-General in the cooperative’s 2022/2023 and 2023/2024 financial statements.

Unsupported Expenditure

At the centre of the inquiry was Ksh1 billion in unsupported expenditure under the Farm Input Subsidy Program. This included Ksh940 million reportedly spent on farm inputs and Ksh61 million on awareness campaigns in coffee-growing counties.

Parliament noted that while NKPCU management insisted they had shared supporting schedules with the Auditor-General, MPs found the documents incomplete and lacking key verification details such as invoice numbers.

“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 in a statement.

“Members questioned the legitimacy of the expenditure, describing the gaps as red flags requiring immediate clarification,” it added.

Budget Overruns

The committee also grilled NKPCU’s Director of Finance and Accounting, Ednah Kerubo, over unauthorized overspending. According to the Auditor-General’s report, the cooperative exceeded its approved budget of Ksh452 million by Ksh73 million, spending a total of Ksh518,365,837 without seeking parliamentary approval.

“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.

Retirement Age Violations

Beyond financial irregularities, MPs raised concerns over the unlawful retention of eight public officers at the cooperative beyond the mandatory retirement age of 60. The committee noted that the extensions were granted without approval from the Head of Public Service, contravening employment regulations.

Navakholo MP Emmanuel Wangwe, who chairs the committee, criticized the move, arguing that it denied opportunities to younger Kenyans equally qualified for the positions.

“Operational necessity does not override the law. Extending employment beyond 60 requires formal approval, which was not sought,” Wangwe said.

NKPCU’s Defence

In response, NKPCU management defended the decision, arguing that the retained officers were still competent and essential to the cooperative’s operations. CEO Timothy Mirugi explained that the officers were particularly skilled in handling specialized coffee processing equipment, which required experienced personnel.

“The retention was necessary to maintain operations involving specialised coffee processing equipment,” Mirugi said.

Broader Implications

The revelations have sparked renewed debate over governance in Kenya’s cooperative sector, which plays a critical role in supporting farmers and sustaining agricultural exports. Analysts warn that financial mismanagement and administrative lapses at NKPCU could undermine confidence in the cooperative movement, which has historically been a backbone of Kenya’s coffee industry.

The committee is expected to issue recommendations on corrective measures, including stricter oversight of cooperative finances and enforcement of retirement regulations.

Conclusion

The grilling of NKPCU management underscores Parliament’s growing scrutiny of public institutions tasked with managing billions in taxpayer funds. With questions over unsupported expenditure, budget overruns, and unlawful employment practices, MPs have signaled that accountability in Kenya’s cooperative sector must be strengthened to safeguard both farmers and public resources.

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MPs Uncover Major Financial, Administrative Irregularities at Kenya Planters Cooperative Union