Posted on March, 15, 2021 at 10:25 am
Assets of the National Cereals and Produce Board (NCPB) risk auction over a Sh7.3 billion debt.
The board used its assets as collateral to secure the loan from the Kenya Commercial Bank.
The cash-starved State agency further has an additional Sh4.1 billion maize subsidy debt and Sh1.11 billion owed to State Department of Devolution, Agriculture Development Corporation (ADC), Agriculture Food Authority (AFA) and County Government of Murang’a.
NCPB chairman Mutea Iringo (pictured) told the National Assembly’s Agriculture committee that the board has been holding an un-serviced bank loan of Sh6.38 billion as at February 28, 2021.
The facility continues to accrue interest and penalties of Sh110 million per month at a rate of 22.5 per cent.
Currently, the total interest charged stands at Sh3.1 billion.
“It was worth noting that the total loan exposure is Sh7.3 billion – Sh6.38 billion unserviced KCB facility and Sh1.0 billion being the interest charges paid from NCPB resources which is reimbursable,” he explained.
Failure to pay
Source: The Standard