The state-owned New Kenya Cooperative Creameries has yet to receive 51 asset ownership documents 16 years after it was acquired from private investors.
Lawmakers yesterday heard that the firm had paid Sh23 million to a law firm, Mungai Advocates, to help it obtain the crucial documents.
The company, formerly known as KCC, was mainly owned by farmers' cooperative societies up to 1999 when it went under receivership.
It was then bought for Sh475 million by a private group, which rebranded it in 2000. In 2003 after Mwai Kibaki took over as president, the government bought it and renamed it New KCC.
Yesterday, NKCC managing director Nixon Sigey told the National Assembly’s Public Investment Committee chaired by Mvita MP Abdulswamad Nassir that they have not received the documents and at one point changed the law firm given the slow pace of the process.
The NKCC board contracted Mereka and J.M Njenga, which is currently handling the issue of the 51 disputed titles.
The assets, Sigey said, are mainly land and buildings owned by the old KCC.
He said they have obtained 48 title documents and are doing everything possible to secure the remaining 51.
“These are disputed properties vested in NKCC ownership via a court order and without registered title documents. New KCC is pursuing the same through litigation by our advocates,” the MD said.
“Applications for title re-issuance and registration have also been made by our advocates for all properties with missing title or properties evidenced by copies of allotment letters.”
The House committee is examining audited accounts of state corporations.
Auditor General Edward Ouko raised fears over five charged title documents valued at about Sh853 million and held by the Co-Operative Bank of Kenya as collateral for an outstanding obligation.
Sigey explained that the transaction is a normal business practice when sourcing for funds for the company’s operations.
(Edited by R.Wamochie)
