Talks to resolve the Sh7 billion NCPB loan underway

Talks to resolve the Sh7 billion KCB loan owed by the National Cereals and Produce Board are underway, board chairman, Mutea Iringo has said.

He said Agriculture CS Peter Munya was organising a tripartite meeting with Ministry of Agriculture, Treasury, NCPB and KCB to resolve the loan which has been accruing more than Sh3 million per day interest.

Iringo said huge debts owed by the ministry and the KCB loan which was attracting more than Sh3 million daily and Sh110 million per month were some of the major challenges that needed concerted efforts to end.

Speaking at the Nakuru Grain Silo Complex in Industrial Area when he toured the multi-billion depot, Iringo said unpaid debts owed to NCPB were some of the greatest challenges weighing down the organisation, adding that the  Agriculture ministry and a few parastatals aligned to it owed NCPB billions of shillings.

“We held meetings with the ministry to get the debts paid and also piled pressure through the CS and his PS to get the parastatals to pay,” he said.

Iringo who was accompanied by senior NCPB officials said the organisation had outsourced debt collectors to collect and reduce debts owed by individuals while at the same time tasking depot managers through performance contracts to ensure debts are collected.

He said the board was firmly on course with the desired reforms and were expecting funding from the ministry to actualise the National Food Reserve and Sh4 billion to procure food for it.

The NFR division will deal with procurement and management of the National Food Reserve kitty formerly handled by the Strategic Food Reserve.

“Trading Division will be the commercial arm of NCPB which will include buying and selling cereals, storing produce for farmers and traders at a fee and offering drying services among other deliveries,” he said.

 

Iringo said under NFR, there will be a Food Balance Sheet committee which will oversight and advice on food situation in the country, monitor production and consumption and research government interventions.

Still on reforms, he said the board recruited high calibre top management who included a managing director, general manager marketing and operations, GM finance and accounting, head of procurement services and manager, corporate planning to drive the positive change.

“The board is leveraging on its elaborate network in all counties with 110 depots countrywide to deliver services of Kenyans,” said Iringo.

He added that the board had diversified its commercial activities from traditional grains like maize to include beans, green grams, rice, sorghum, millet and other foods like milk powder, canned meat and fish.

He said NCPB had partnered with fertiliser, seed and agricultural farm input manufacturers on an agency basis to provide products to farmers at affordable prices.

“We have set up commercial agricultural hubs which are one-stop shops for farmers to obtain inputs, services and information,” he added.

He promised that among the goals of the board that was initiated slightly more than two years ago following the crisis that marred NCPB, was to steer the organisation away from perennial corruption scandals by promoting professionalism, meritocracy and fairness in its daily operations.

Iringo said the organisation would also automate its services and reduce humane interference claiming that it promotes corruption.

-Edited by Sarah Kanyara