New KCC hailed for good accounts

A delegation of MPs led by Kanini Kega (2nd) from right) during a visit at the New KCC factory in Eldoret on March 22nd
NEW KCC A delegation of MPs led by Kanini Kega (2nd) from right) during a visit at the New KCC factory in Eldoret on March 22nd

New KCC's 2016/17 books of accounts have satisfied the Auditor-General.

Edward Ouko in his assessment for the period under review said the state owned dairy firm kept adequate accounting records of its operations.

He said New KCC's financial statements on profits, losses and other matters give an actual record of its performance.

“In my opinion adequate accounting records have been kept by the company as per the examination of records for the year ending June 30th 2017”, said Dr Ouko.

He says information given by directors is consistent with financial statements of the company.

New KCC managing director Nixon Sigey said the company posted a pre-tax profit of Sh180 million with a sales turn over sh 9.4 billion marking a nine percent growth in revenues from previous year.

He said the company paid Sh3 billion to 60,000 farmers. So far the company has increased its payments to farmers to Sh5 billion and its turnover has now surpassed sh 10 Billion.

The company has widened its markets locally and abroad with a variety of products and Sigey says they now have a capacity to store up to 1.5 million litres at any given times.

Last week, MPs toured the company factories and praised its modernisation using more than Sh1 billion given by the government.

The MPs said the company was protecting farmers interest and its planned privatisation should be handled with great care

Ouko however raises concerns on the company's assets. He says property, plant and equipment balance of Sh2.2 billon has unresolved issues including 49 properties with a value of sh 1.9 Billion whose title documents were not available for audit.

Questions were also raised over disputed 16 properties valued at Sh222 million still registered in the names of third parties which independent valuation reports puts at Sh 700 million.

The company also failed to disclose in its financial statements that the EACC had cleared two of its plots LR No 37/371 and LR No 37/22 situated in Upper Hill Nairobi which had legally been transferred to third parties.

Ouko says five acres at Miritini New KCC factory had been invaded by squatters and the company stands to lose the vital asset.