Senate Committee Probes NCPB Debt Crisis, Warns of Rising Post-Harvest Losses
A 2021 Auditor-General’s report revealed that NCPB had accumulated overdrafts totaling Sh 6.7 billion
By Jessica Nyaboke
The Chairperson of the Senate Committee on Agriculture, Bungoma Senator David Wafula Wakoli, has sounded the alarm over a deepening financial crisis at the National Cereals and Produce Board (NCPB), warning that mounting debt is severely undermining its ability to serve farmers effectively.
Speaking during a tour of the facility, Senator Wakoli explained that government arrears have hamstrung NCPB’s operations, compromising its core function of supplying farm inputs and grain management.
“The National Strategic Reserve and NCPB play a critical role in supplying farm inputs to farmers, but the debts have crippled service delivery. We wanted to assess how prepared the facility is ahead of the maize harvesting season,” he told journalists.
He cautioned that without proper handling and storage, farmers face significant post-harvest losses.
“If maize is not handled well, farmers will continue to incur huge post-harvest losses. This is something we must urgently address.”
The senator also noted that although maize dryers were procured for use in counties, most remain non-functional due to coordination failures.
“The dryers procured by government are not functioning due to a lack of coordination. Farmers are left to rely on traditional methods of sun drying or are forced to transport their maize to NCPB depots for drying.”
A spot check by media confirmed that most dryers in sub-counties are underutilized, raising concerns about wasted infrastructure investment.
Wakoli further highlighted staffing challenges at NCPB, saying:
“There is a serious shortage of staff at NCPB. Many have left for greener pastures, and this has directly affected efficiency.”
NCPB’s Growing Financial Troubles
A 2021 Auditor-General’s report revealed that NCPB had accumulated overdrafts totaling Sh 6.7 billion at Kenya Commercial Bank—largely to fund the government’s fertilizer subsidy—resulting in interest and default charges exceeding Sh 1.5 billion annually (approximately Sh 4.1 million per day), seriously straining liquidity and operations .
Moreover, as far back as March 2021, farmers and industry groups demanded the government settle over Sh 16 billion owed to NCPB so that maize purchasing could resume. At the time, lack of funding had forced NCPB to suspend maize purchases, leaving farmers stranded amid falling prices .
The situation has also taken a legal turn: NCPB faces an auction threat over a Sh 522 million judgment debt owed to Erad Supplies and General Construction Ltd. Property—including maize dryers and vehicles—risks being seized. Farmers in the Rift Valley have expressed alarm that such auctions could jeopardize subsidized services and even their stored maize .
About Author
