The National Cereals and Produce Board (NCPB) has once again found itself in the spotlight following a damning audit report that uncovered irregularities in the procurement and distribution of fertiliser worth KSh31.5 billion.
Auditor General Nancy Gathungu, in her latest findings for the year ending June 2024, revealed that some of the fertiliser supplied under the scheme was either substandard, not delivered to designated depots, recalled from farmers, or seized by investigative agencies.
The report raises concerns that fraudulent activities may have been involved in the multi-billion shilling procurement process. Out of the KSh31.5 billion, KSh20.4 million was traced to a non-existent supplier who had allegedly delivered substandard fertiliser to unsuspecting farmers.
According to the audit, payments were made to a company known as 51 Capital, alongside African Diatomite Industries. However, investigations revealed that 51 Capital was non-existent at the time of the contract, with its KRA PIN linked to another firm registered in 2020.
The Auditor General further questioned how NCPB proceeded with the contract despite Kenya Bureau of Standards (KEBS) surveillance, conducted in February 2022, showing the fertiliser failed to meet set specifications and requirements.
In a separate case, NCPB also paid KSh139.6 million to a chemical company for the supply of NPK fertiliser under the Fertiliser Subsidy Programme (FSP). KEBS later flagged the product as substandard and unsuitable for planting.
A spot check by the Ministry of Agriculture and Principal Secretary revealed that most fertiliser in county stores did not meet the required quality standards, raising fears of losses to farmers and food insecurity risks.
Questions have also been raised about the awarding of a contract for 600,000 bags of UREA worth KSh2.5 billion. Despite a tie in pricing, the tender was awarded to MEMS Distributors after the negotiation committee split the contract.
The revelations now pile pressure on NCPB, already battling a battered image from past scandals, to explain how billions meant to boost food production ended up funding fake suppliers while farmers continued to suffer from substandard inputs.
By Newshub