A worker at a New KCC factory in Kiganjo, Nyeri County. FILE PHOTO | NMG Troubled supermarket chain Nakumatt, which is currently under receivership, owes the New Kenya Cooperatives Creameries (KCC) a whopping Sh290 million in unpaid milk deliveries.
New KCC managing director Nixon Sigey revealed to Parliamentarians on Thursday that the State-backed milk processor is also owed Sh89 million by debt-ridden Uchumi Supermarkets .
Mr Sigey said Nakumatt Supermarkets has been unable to pay the amount following its placement under statutory management.
“We have long outstanding trade receivables from Nakumatt Supermarket and Uchumi Supermarkets,” Mr Sigey told the Public Investments Committee (PIC).
Mr Sigey appeared before the committee chaired by Mvita MP Abdulswamad Nassir to respond to audit queries raised by Auditor-General Edward Ouko.
Mr Sigey told MPs that New KCC is negotiating with Nakumatt’s current management on how the retailer can make good the debt.
“We have reached out to the new Nakumatt administrator Peter Kahi on the payment of this debt but this is not forthcoming,” Mr Sigey said.
He noted that New KCC is still trading with Nakumatt which still has a few branches open across the country but on cash delivery basis.
“A few of its outlets are still open but trade volumes have fallen sharply from sales of Sh100 million per month to less than Sh5 million per month currently,” Mr Sigey said.
On Uchumi debt, Mr Sigey said New KCC has no arrangement for deliveries of its milk products on cash on delivery basis. He said the State firm stopped its arrangement with Uchumi after it failed to pay the Sh89 million debt.
