Parliament’s Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSA) has questioned officials from the Pyrethrum Processing Company of Kenya (PPCK) over audit queries, pending statutory remittances, and financial management concerns raised in reports covering the period between 2013 and 2025.

The session focused on financial and operational challenges facing the state corporation, including inherited liabilities, ageing infrastructure, and unresolved land disputes. Lawmakers questioned the company’s handling of taxpayer funds and demanded explanations regarding missing documentation linked to previous financial transactions.

One of the issues raised involved failure by the corporation to remit Pay As You Earn (PAYE) deductions despite recovering the funds from employees’ salaries. Members of the Committee criticised the use of statutory deductions to finance operational activities.

Martin Owino (Ndhiwa) challenged the explanation given by management regarding financial constraints, stating: “You are not supposed to say it is because there’s a shortage of resources. This money is not yours. It’s a catch-22 where you will rob Paul to pay Bill. That is not legally right.”

Questions over losses

The Committee also examined a reported Ksh1.3 billion loss in pyrethrum content that has been amortised over a 30-year period since 2007. The acting factory manager attributed the losses to ageing extraction plants dating back to the 1950s, saying the facilities contributed to deterioration of stored products over time.

Lawmakers sought justification for the long write-off period and requested additional documentation to support the accounting decisions made by management.

Committee Chair Emmanuel Wangwe (Navakholo) also questioned a Ksh100 million transaction involving the Agriculture and Food Authority (AFA) and the New Kenya Planters Co-operative Union (New KPCU). He raised concerns over the legal basis for the movement of funds between the agencies.

Land disputes and next steps

The Committee further discussed challenges to PPCK’s 864-acre land holdings, including encroachment and ongoing court cases. Wangwe criticised management for delays in securing and fencing the property.

“The land is under paper again. I can tell you in the next 3 years if you don’t rise up to the occasion, none of you will be here. This is no joke,” he said.

PPCK management was directed to provide all missing documentation and a comprehensive report on the company’s assets and liabilities by early June. The Committee is expected to determine whether further legal action or additional recommendations will follow after reviewing the submitted records.