Written By Lisa Murimi
The Senate’s Trade Committee on Tuesday exposed significant irregularities in a controversial Sh16.5 billion edible oils importation deal, revealing that Kenyan taxpayers lost at least Sh6.6 billion.Â
The probe into the Kenya National Trading Corporation (KNTC) uncovered losses due to currency fluctuations, warehousing costs, and improper sales practices.
KNTC’s General Manager for Finance, Purity Kimanthi, told the committee that the corporation sold part of the consignment, some nearing expiration, for re-export, generating only Sh5.9 billion from 1.67 million jerricans.
However, 10,651 jerricans were damaged in transit, further adding to the losses.
Kimanthi admitted that the oil was sold below the intended price, costing an additional Sh 540 million.
Senators questioned how such substantial losses were incurred.
Marsabit Senator Mohamed Chute pointed out that KNTC overpaid suppliers by Sh2.5 billion due to currency fluctuations and mismanagement, and questioned why the corporation opened letters of credit at inflated rates.
KNTC’s Acting Managing Director, Peter Njoroge, acknowledged the pricing errors but shifted blame to his predecessor.
He assured the committee that KNTC is pursuing refunds from suppliers who have yet to issue credit notes.
The committee condemned the mismanagement, noting the edible oils deal was initially aimed at cushioning citizens from the high cost of living.
