Kenyan taxpayers are set to bear the burden of Ksh 1.7 billion in payments to companies involved in the controversial importation of edible oils and rice.
This follows the National Treasury’s supplementary budget approval by Parliament before legislators went on recess.
The funds were allocated to the Kenya National Trading Corporation (KNTC), whose former CEO, Pamela Mutua, is facing charges over the 2022 importation scheme. The allocation was not part of the initial mini-budget submitted to Parliament.
Hon. Pamela Mutua during a past event. Photo: NTV Kenya Source: X
A report by the Liaison Committee, chaired by Gladys Boss Shollei, recommended the increase of Ksh 1.7 billion for KNTC’s financial obligations related to the importation of edible oil and rice.
However, the committee failed to provide any justification for the payment, raising concerns about accountability and transparency.
Court proceedings have revealed that politically influential suppliers lobbied State House to fast-track payments amounting to billions of shillings.
The importation programme, launched in January 2023 to stabilise consumer prices, allowed politically connected traders to import rice, edible oils, beans, and fertiliser duty-free.
Uasin Gishu women rep Hon Gladys Boss Shollei attending Abiria Ni Mayai derby in Kasarani. Photo: Nation Source: Facebook
KNTC’s current managing director, Lucy Anangwe, testified in court that Purma Holdings, owned by Mary Wambui Mungai, who was popularly known as Wambui Wa Ruto during the 2017 and 2022 campaigns, received Ksh 3.9 billion for rice valued at Ksh 3.1 billion.
Anangwe also revealed that Wambui sought assistance from Head of Public Service Felix Koskei to expedite the payment.
At the time of the importation scheme, Ms. Wambui was the sole owner and director of Purma Holdings, which secured multiple contracts shortly after the withdrawal of a Ksh 2.2 billion tax evasion case against her company.
Purma Holdings secured the following deals:
- Ksh 3.9 billion rice contract
- Ksh 2.5 billion edible oil contract
- Ksh 3.4 billion beans supply deal
Additionally, Charma Holdings, linked to Wambui’s associate, Ruth Waithira Kinyanjui, was awarded a Ksh 1.95 billion edible oil contract, while Evertec General Trading Company Ltd and Enterprise Supplies Ltd, both associated with Wambui, secured contracts worth Ksh 984 million each.
Ruto and Wambui. Photo: Nation Source: X
Former KNTC Managing Director Pamela Mutua and Supply Chain Manager Amos Juma Sikuku have been charged with mismanagement, excessive supplier payments, and procurement irregularities.
The duty-free importation scheme, intended to lower consumer prices under the Kenya Kwanza administration, faced strong opposition from local manufacturers who argued it would harm local production.
Critics now claim the programme primarily benefited politically connected businesses, leaving taxpayers to shoulder the financial losses.
