Dec 9, 2021

Mawazo Writing Africa

Writing about the main

Trouble as struggling, dead supermarkets owe KCC Sh764m

The New Kenya Cooperative Creameries may not get back the millions owed by several supermarkets after some of the debtors went out of business.

An audit report for the year ending June 2020 shows that The collapsed giant supermarket chain Nakumatt Holdings New KCC owes Shn 290 million

Naivas Supermarket Ltd, for its part, owes New KCC 217 million Sh1.6 billion owed by the dairy processor from its various customers.

Uchumi Supermarket is in bankruptcy while Nakumatt Holdings Ltd is in liquidation , while the status of Tuskys remains to be determined.

Only Naivas is currently operating nal with Gathungu in the report released October 27th in which New KCC is cited because it has only Sh 419 million and effective debtor monitoring mechanisms and a dynamic credit policy for debt management and monitoring, “said Gathungu.

The report further shows that the 22 lots ( Land) from New KCC worth Sh853 million land grabbers for lack of ownership documents.

Gathungu added that the value of two controversial properties in Upper Hill, Nairobi, allegedly transferred to third parties, was reported in the financial statements were not disclosed.

Another 23 controversial properties that had not been assessed but were registered in the name of third parties were not disclosed.

“The legal status of the properties had not yet been clarified , “Gathungu said,” No tangible change in the status of the parcels has been achieved despite the company having initiated legal proceedings to recover the disputed land. “

The audit found New KCC in spite of Involvement of the National Land Commission and the Länder. The Ministry has not yet made any progress on this issue.

In addition, five hectares of the 32.9 hectare property on which the Miritini Milk Processing Factory is located has been raided by informal settlers, some of whom are structures on the Land.

“In these circumstances, ownership of the property inhabited by the Society as well as the property registered in the names of third parties is at risk,” said Gathungu.

“It was It is not possible to evaluate and own land worth Sh3.8 billion. on the company’s balance sheet. ”

In the year under review, New KCC’s revenues fell by Sh 780 million, which details the endless struggles of the state processor in its efforts to stay afloat. < / p>

Managing Director Nixon Sigey reported to the auditor that the company had its pre-tax profit of Sh 606 million. by Shs 512 million. not reached.

He cited the strong competition from products from Uganda with data showing that around 110 million liters of milk were imported from the neighboring country.

The new KCC profit after tax was a negative Sh255 million after a tax of Sh350 million was charged, which consumes Sh95 million in net profits for the year.

Under the circumstances, management said that shareholders The company is not allowed to pay dividends for the reporting year.

In the first year, the office received 25 million communications authority.

The office received a budget increase of 250 million Sh The amount is expected to reach 270 million Shillings in the next financial year. increase to hire more staff.