The Kenya Forum | Audit loss-making agro-chemical company says Muhoroni MP K’Oyoo - The Kenya Forum

May 30, 2023

Summary

The company made a loss of Sh8.1 billion in the year 2020 according the Auditor General Nancy Gathungu and the company’s own financial statement.

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Audit loss-making agro-chemical company says Muhoroni MP K’Oyoo

Audit loss-making agro-chemical company says Muhoroni MP K’Oyoo

The Agro-Chemical Company in Muhoroni (Photo courtesy Afringa)

Muhoroni MP Onyango K’Oyoo has publicly called for a ‘forensic audit’ of the state-owned Agro-Chemical and Food Company that is situated in his constituency on the Muhoroni-Chemelil Road, to ascertain whether it is profitable, or a drain on the taxpayer.

K’Oyoo said the company made a loss of Sh8.1 billion in the year 2020 according the Auditor General Nancy Gathungu and the company’s own financial statement set out by its chairman, Mohammed Bulle.

A report by the Auditor General showed that the company was unlikely to be able to continue trading without government support and the tolerance of its creditors.

Mehta International Group manages the agro-chemical company

The Agro-Chemical and Food Company was set up it in 1978 to produce power alcohol from sugarcane molasses. Since that time the company has been under the management of the Mehta Group.

K’Oyoo called on Agriculture Cabinet Secretary Mithika Linturi to undertake a thorough audit of the company before the management contract with Mehta International Group, is renewed. The contract with Mehta lapsed in 2022.

K’Oyoo set out his concerns in a letter to Linturi on May 15 and later met with stakeholders.

In addition to running at a loss K’Oyoo claims the company has failed to pay back the initial government loan that help set up the company wand which has now grown to about Sh10 billion.

Alleging corruption in government entities and intense pressure from ‘powerful politicians’, K’Oyoo stated that stakeholders will mount demonstrations if their grievances are not addressed.

Kenya Forum readers may also be interested in the following postings:

Muhroni MP Onyango K’Oyoo: “Exam cheating will not be tolerated” (24 October, 2014)

K’Oyoo draws attention to Ouko murder with library memorial (21 May, 2014)

Muhoroni MP K’Oyoo will not appear on IEBC list (29 May, 2017)

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