'Broke' NCPB has not paid staff for two months

Employees at the National Cereals and Produce Board have not been paid for the last two months, an official from the board has revealed.

The government agency is grappling to pay salaries and electricity bills.

NCPB is owed Sh11 billion by the Ministry of Agriculture and the Strategic Food Reserve. 

The officer, who requested anonymity because he is not authorised to talk to the media, on Tuesday blamed the difficult situation on inadequate financing from the ministry.

The ministry owes NCPB Sh8 billion which has accrued since the 2015-16 financial year from the purchase of fertiliser. Another Sh3 billion is owed by SFR, being money used to buy chemicals and bags to store maize in their depots.

But SFR chairman Noah Wekesa denied owing NCPB any money. Instead, he said the cereals board owes them for the sale of maize.

“Their problem has nothing to do with us but the way they manage their affairs. We have no debt,” Wekesa said told the Star on phone.

The officer explained that NCPB buys fertiliser on behalf of the Ministry of Agriculture.

“NCPB buys fertiliser at a commercial rate through a bank loan from KCB. The government then directs the board to sell to farmers at a subsidised price. The difference between the commercial rate and the subsidised price is what the government has not provided,” the officer said.

During 2015-16, NCPB took a Sh4 billion loan to buy fertiliser and since then, there is an outstanding balance of Sh300 million. There is also an outstanding balance for 2016-17 and 2017-18 financial years.

“This is not to mention the interest that has now accrued to over Sh1 billion and keeps increasing,” the NCPB officer said.

Wekesa said the board is an agent and their duty is to buy and sell maize at the direction of SFR.

"But they have been selling maize on our behalf without remitting any money to us,” Wekesa said. 

The chairman said they will have a joint board meeting on Thursday to discuss these issues.

On the release of maize to millers, the chairman said they have completed a vigorous vetting process for millers that are set to receive two million bags from the cereals board.

“Most of the millers have paid and should start picking maize from NCPB depots anytime,” he said.

But another officer, who sought anonymity because he is not supposed to comment on the matter, said NCPB staff are demoralised by the lack of pay and this could slow the release of maize to millers.

(Edited by R.Wamochie)