Tag: National Cereals and Produce Board (NCPB)

  • Power Play at Cereals Board: Kimote’s Comeback Bid Ignites Explosive Tribal Showdown

    Power Play at Cereals Board: Kimote’s Comeback Bid Ignites Explosive Tribal Showdown

    A bitter succession battle has erupted at the National Cereals and Produce Board, exposing dangerous ethnic fault lines that threaten to paralyse one of Kenya’s most strategic agricultural institutions.

    At the centre of the storm is Joseph Kimote, the former managing director whose dramatic acquittal in a Sh209 million fake fertiliser scandal has triggered a ruthless power struggle that has dragged State House, Cabinet, and tribal power brokers into an increasingly toxic confrontation.

    Kimote, whose lawyers are now demanding his immediate reinstatement following his surprise acquittal by the Milimani Anti-Corruption Court late last year, finds himself locked in a fierce contest with acting MD Samuel Ndung’u, who has held the position since Kimote’s criminal prosecution began.

    But this is no ordinary boardroom succession dispute.

    Behind closed doors, the fight has degenerated into a naked tribal contest pitting Mount Kenya powerbrokers against what insiders describe as the Rift Valley mafia, with Agriculture Cabinet Secretary Mutahi Kagwe caught uncomfortably in the middle.

    Sources within NCPB reveal that Ndung’u has been frantically warning allies that powerful forces within President William Ruto’s State House are plotting to advertise the MD position and install a compliant figure. His greatest fear is that Kimote’s unexpected legal victory has complicated these schemes, giving the former boss a legitimate claim to return.

    The tribal arithmetic is stark and troubling. The NCPB board, chaired by Samuel Ragwa, includes a Rift Valley dominated lineup featuring Chris Kiptoo, Principal Secretary for National Treasury and Economic Planning, William Kirwa, Laban Kiplagat, and Jonah Marindich. Together with directors Winnie Beauttah, Galgalo Abasoud and John Thongori, they form a powerful voting bloc that Ndung’u believes can be mobilised against him.

    In private conversations, the acting MD has complained bitterly that his Mount Kenya roots now count against him, especially following the impeachment of former Deputy President Rigathi Gachagua, which has left the region politically marginalised in Ruto’s administration.

    The tribal dimensions extend deep into NCPB’s management structure. Mount Kenya executives occupy what insiders describe as strategic positions including John Gichuru as acting general manager for finance and accountancy, Gideon Muthuri heading marketing and operations, Ambrose Njoroge in internal audit, Karanja Wainaina managing security, and Theuri in human resources.

    Kalenjin officers, while present, reportedly hold less influential posts. These include Noah Koskei in corporate planning, Tito Keino heading ICT, Bernard Yegon in risk and compliance, Philip Kandie overseeing warehousing, Dennis Mutai as regional manager for Lake and Western regions, and Emily Kikwai managing the South Rift region.

    This ethnic imbalance at senior levels has become ammunition for those seeking wholesale changes at the parastatal. Disturbingly, sources say Ndung’u has complained of facing pressure to pay millions in protection money to rogue board directors and money hungry MPs from various parliamentary committees.

    The scandal that brought down Kimote continues to cast a long shadow. While the court acquitted him, it ordered NCPB officials Joseph Ngerich and John Matiri, who chaired the business development and advisory committee, to stand trial alongside businessman Josiah Kariuki, his company Fifty-One Capital Limited, and JBL Innovate Manufacturers over the substandard fertiliser allegations.

    Particularly controversial is Nelson Sawenjah, head of procurement services, who allegedly betrayed former colleagues now facing criminal prosecution. Multiple sources claim Sawenjah operates as an underground state security operative, reporting directly to various intelligence arms, a role that has made him untouchable despite the procurement scandals.

    The looming changes have already identified casualties. Philip Kandie, the acting head of warehousing, is reportedly being groomed by Rift Valley power barons as the next MD, a move that would consolidate ethnic control over the institution.

    Other senior officers watching nervously include Veronica Mapesa, acting corporation secretary and head of legal services, Rosemary Kweya, deputy manager for corporate planning, John Ndonje managing markets and information, and Muoka Mwanga heading technical services.

    The ethnic politicisation of NCPB, which plays a critical role in Kenya’s food security through strategic grain reserves and farmer payments, raises alarming questions about governance in state corporations. How the board has failed to address or even acknowledge the dangerous tribal dimensions at senior management levels remains unexplained.

    As Kimote manoeuvres for his comeback and Ndung’u fights to retain his acting position, the real casualties may be Kenya’s farmers and food security, held hostage to tribal calculations and personal ambitions that have nothing to do with competence or the national interest.

    The Agriculture Ministry has not responded to requests for comment on the succession crisis and the ethnic composition of NCPB leadership.​​​​​​​​​​​​​​​​

  • Revealed: NCBA Bank’s Hand In Fake Fertilizer Scam

    Revealed: NCBA Bank’s Hand In Fake Fertilizer Scam

    In what ignited the memories of NYS saga where banks were used in looting public funds, NCBA Bank finds itself in muddy grounds after being dragged the multimillion fake fertilizer saga that has caught the country in shock and left many farmers counting losses thanks to the greed of a few who conspired with crooked businessmen in the supply chain.

    Documents tabled by the prosecution in the court indicate that the firm, 51 Capital owned by controversial businessman with a criminal past Joe Kariuki used fake documents in almost all its transactions that saw it being paid Sh 206.2 million in a deal that has left farmers with heavy losses.

    It has emerged that he used the Kenyatta’s owned bank to defraud farmers and consequently launder money.

    Details are now emerging of how National Cereals and Produce Board (NCPB) top officials conspired with a Joe Kariuki to supply farmers with an ingredient used to reduce high acidity in the soil in the disguise of providing them with fertilizer.

    Reports also indicate that those behind the scheme, bought the soil  conditioner, scientifically known as diatomaceous at Sh 200 per a kilogramme and sold it to NCPB at Sh1700 , making an impeccable profit.

    A total of 106, 000 bags of diatomaceous 25 kg each (soil conditioner) were supplied to  NCPB with 51 Capital being paid Sh 205, 222,000 through its account number 4746630018, NCBA bank, Prestige  branch through Swift Code CBAFKENXXXX.

    According to the documents, 51 Capital entered into a contract with NCPB on March 31, 2022 so supply to the cereals board among other items, animal supplements, GPC Guard and Diatomaceous.

    Suspended NCPB Managing Director Joseph M. Kimote and Corporation Secretary J.K Ngetich signed the contract behalf of the parastatal while Josiah Kimani Kariuki, the director at 51 Capital signed on behalf of the private entity. A Mr Abraham G. Wanjiru signed the document as a witness.

    Details have now emerged how 51 Capital purportedly bought the soil conditioner from African Diatomite Industries , packaged it in 25 kg bags and sold resold it to NCPB.

    Although in the agreement, 51 Capital purported to have been supplying the soil conditioner together with African Diatomite Industries, investigations by the Economic and Commercial Crimes Unit of the Directorate of Criminal Investigations established otherwise.

    According to ECCU, 51 Capital is said to have used fake papers to bring  African Diatomite Industries into the deal without their knowledge.

    Already, three top officials of NCPB have been  charged before an Anti-corruption court with Sh209million fake fertiliser scandal.

    They are accused that jointly with others not before court, they conspired with intent to defraud Kenyan farmers, sold a total of 139,688 bags of 25 Kgs each of soil amendment and conditioner valued at Sh209,532,000 purporting it to be a genuine fertilizer a fact they knew to be false.

    Kamote  was charged that being the MD at the NCPB, used his office to improperly confer a benefit to Kariuki by executing an Agency Contract between the NCPB and 51 Capital, African Diatomite Industries Limited to supply 139,688 bags of 25Kgs each of soil amendment and conditioner branded as fertiliSer within NCPB depots across the country.

    Ngetich  was charged separately that on March 31, 2022, at Kenya NCPB headquarters Nairobi City within Nairobi County, being the Cooperate Secretary at NCPB used his office to improperly confer a benefit to Kariuki by executing an Agency Contract between the National Cereals and Produce Board and 51 Capital, African Diatomite Industries Limited.

    The third NCPB official, John Mbaya  was accused that being the Chairman of Business Development and Advisory Committee at the NCPB used his office to improperly confer a benefit to Kariuki by recommending an Agency agreement between the NCPB and 51 Capital, African Diatomite Industries Limited to supply 139,688 Bags of 25 Kgs each of soil amendment and conditioner branded as fertilizer within NCPB depots across the country.

    Kariuki, the director of the two companies at the center of the fake fertilizer scandal namely Fifty-One Capital Limited and SBL Innovate Manufacturers Limited, was accused of selling fake fertiliser to NCPB for distribution to farmers and  forgery contrary to the Penal Code, falsifying crucial tender documents and applying standardisation mark to substandard goods.

    Kariuki also faced a separate charge of manufacturing substandard goods for sale and knowingly using wrong labels on the bags of fake fertiliser.

    They were charged before Milimani Anti-Corruption Court Magistrate Celesa Okore where they  all denied the charges and a pre-trial conference has been scheduled for June 17.

    While 51 Capital was purchasing the soil conditioner from African Diatomite at Sh 200, it sold the same to NCPB at Sh 1,700, with the later pocketing Sh 200 as commission for operations. Thus 51 Capital ended up pocketing a cool Sh 1,500 from each kilogram of soil conditioner.

    In the document, now tabled before the court, 51 Capital had promised to deliver to the board’s designated regions, depots and silos products meeting the Kenya Bureau of Standards (KEBS) with the payment being made within 14 days after delivery.

    Banks fined

    In what could likely befall NCBA Bank, the Central Bank of Kenya (CBK) in 2018 found five banks culpable for illegally handling the billions stolen from NYS and fined them millions of shillings.

    CBK said the banks violated the law by failing to report the large cash transactions and failing to undertake adequate customer due diligence.

    Standard Chartered Bank was fined Sh77.5 million, Cooperative Bank (Sh20 million), DTB (Sh56 million), Equity (Sh89.5 million) and KCB (Sh149.5 million).

  • I Was Approached By Powerful Politicians To Kill Fake Fertilizer Story, Allan Namu Reveals

    I Was Approached By Powerful Politicians To Kill Fake Fertilizer Story, Allan Namu Reveals

    Africa Uncensored chief executive and founder John-Allan Namu who is the first witness to appear before the Senate Agriculture Committee revealed that some influential political leaders both outside and inside parliament reached out to him in attempts to convince him not to air an exclusive story on fake fertiliser scandal being witnessed.

    According to Namu, his organisation has been carrying out wide investigation on public procurement since 2018 and that the fake fertiliser scandal cuts across the Uhuru Kenyatta and the William Ruto’s Kenya Kwanza’s administrations.

    Namu was categorical that investigative bodies should look at the issue of complacency among senior officials of state agencies since the issue did not raise concerns among the relevant actors all this time.

    “I would like to inform this committee that politicians across the political divide might have been involved in this fake fertiliser conspiracy, some of them even reached out to me seeking to have African Uncensored not to air this story where the majority of those affected are small scale farmers,” said Namu.

    He said he was ready to provide evidence about the politicians who approached him to kill his story, and was ready to appear in court. He told the committee the report looked at public procurement since 2018 and that the fake fertiliser scandal cut across the previous and current administrations.

    Committee chairman Kirinyaga Senator James Murango said Agriculture Cabinet Secretary Mithika Linturi and the chief executive officers of Kenya Bureau of Standards and Kenya National Trading Corporation will appear before it to shed light on prevalent claims of fake farm inputs.

    Murango said the Auditor General, National Environment Management Authority CEO and the individuals mentioned adversely in an expose launched by media investigations team; the African Uncensored, have been invited to appear before the committee to clear the air about the well-executed scandal.

    Murango while terming the fraud as akin to terrorism, charged that action must be taken against the unscrupulous individuals who have not only embarrassed the Kenya Kwanza administration but also posed a threat to food security.

    Samson Cherargei (Nandi) said that the roles of National Cereals and Produce Board (NCPB), Nema, KNTC and Kebs in the fake fertiliser scandal should be investigated further since it appears there was a well-organised criminal enterprise.

    “The organisation that has been mentioned adversely by Africa Uncensored for making fake fertiliser has been carrying out its activities openly, the relevant state agencies should come and explain to us why they failed on their duties, heads must roll over this,” said Cherargei.

    Namu told the committee that Kebs and Nema have no capacity to deal with the fake fertiliser scandal since they have staff shortages. He said that creates a lapse which some unscrupulous individuals have exploited.

    The journalist said he has now been vindicated by the current outcry by Kenyans from various parts of the country. “I would like to tell my fellow journalists that they should not be cowed when they are pursuing stories of public interest like the one we did on fake fertiliser, they should stand up to be counted when fighting for the public good,” said Namu.

  • Probe Launched Into Circulation Of Fake Fertilizer After KEBS Exposed SBL-Innovate Manufacturer Fraud

    Probe Launched Into Circulation Of Fake Fertilizer After KEBS Exposed SBL-Innovate Manufacturer Fraud

    The Government has launched investigations into the fake fertilizer scandal that has rocked the country, warning that those found culpable will face the full wrath of the law.

    Through the Ministry of Agriculture, the State was however quick to note the subsidized fertilizer programme that had benefited hundreds of farmers had not been affected by the scandal.

    In the last couple of weeks, reports have emerged that farmers were supplied with fake fertilizer by unscrupulous traders leading to a drop in crop production.

    This week Kenya Bureau of Standards (KEBS) accused a Kenyan-based regional fertilizer merchant of fraud after it emerged the firm supplied substandard fertilizer to the National Cereals and Produce Board (NCPB).

    Documents tabled before the National Assembly Agriculture Committee by KEBS showed how SBL-Innovate Manufacturer Limited supplied substandard fertilizer dubbed ‘BL-GPC’ for over a year undetected.

    KEBS said the firm applied for certification on January 13 and secured approval on January 28, 2023.

    KEBS Managing Director Esther Ngari told MPs that initially, the company had complied with all requirements which prompted the agency to issue them permits to supply organic fertilizer but later committed fraud by violating the standards.

    The standards agency certified SBL-Innovate Manufacturer to supply organic fertilizer but the firm supplied diatomite, which relies on a biologically generated form of Silica to enhance soil conditions, to NCPB stores.

    “During our surveillance, we sampled the product that was being sold in agrovets and finally got intelligence that the product was being supplied through NCPB stores. Test reports showed the product failed on organic matter,” Ngari said.

    For months, farmers unknowingly purchased the product bearing KEBS certification.

    KEBS said it launched a probe following a tip-off from the public, seizing 5,840 bags in a surveillance raid.

    Following the intelligence, NCPB sampled the product in over 59 ware stores across the country which led to the suspension of the product permits amid fears that the product may still be in circulation.

  • KEBS Accuses SBL-Innovate Manufacturer Limited Of Fertilizer Fraud

    KEBS Accuses SBL-Innovate Manufacturer Limited Of Fertilizer Fraud

    The Kenya Bureau of Standards (KEBS) has accused a Kenyan-based regional fertilizer merchant of fraud after it emerged the firm supplied substandard fertilizer to the National Cereals and Produce Board (NCPB).

    Documents tabled before the National Assembly Agriculture Committee by KEBS showed how SBL-Innovate Manufacturer Limited supplied substandard fertilizer dubbed ‘BL-GPC’ for over a year undetected.

    KEBS said the firm applied for certification on January 13 and secured approval on January 28, 2023.

    KEBS Managing Director Esther Ngari told MPs that initially, the company had complied with all requirements which prompted the agency to issue them permits to supply organic fertilizer but later committed fraud by violating the standards.

    The standards agency certified SBL-Innovate Manufacturer to supply organic fertilizer but the firm supplied diatomite, which relies on a biologically generated form of Silica to enhance soil conditions, to NCPB stores.

    “During our surveillance, we sampled the product that was being sold in agrovets and finally got intelligence that the product was being supplied through NCPB stores. Test reports showed the product failed on organic matter,” Ngari said.

    For months, farmers unknowingly purchased the product bearing KEBS certification.

    KEBS said it launched a probe following a tip-off from the public, seizing 5,840 bags in a surveillance raid.

    Following the intelligence, NCPB sampled the product in over 59 ware stores across the country which led to the suspension of the product permits amid fears that the product may still be in circulation.

    “We haven’t received any communication from NCPB in regards to this particular matter even as they were distributing,” Ngari stated.

    Tigania West MP John Mutunga who chairs the committee raised queries on how the fake fertilizer remained on the market for a year questioning the effectiveness of KEBS surveillance.

    Ineffective surveillance

    “How often do you do your surveillance, what is the effect to the farmers that bought and used this fertilizer, does it have any effect to the crops?” Mutunga posed.

    “Your surveillance system, we need to know how long they go out there to survey product on sale and how often they report counterfeit because the product has been in circulation in 2023,” he added.

    Soy MP David Kiplagat raised eyebrows on how the NCPB ware stores across the country were distributing fake fertilizers unknowingly

    “What’s the relationship between KEBS, NCPB and SBL-Innovate manufacturers? Did NCPB seek assurance from KEBS that the product was certified before distributing? he posed.

    KEBS asserted that it had initiated legal proceedings against SBL Innovate Manufacturers Limited even as it remained unclear on the product quantity in the market.

    “We have written to the Director of Public Prosecution so that we can be able to prosecute the matter under the standard act,” said Ngari.

    The parliamentary probe came hours after the Directorate of Criminal Investigations (DCI) seized 700 bags of suspected fake fertilizer in Kakamega.

    Farmers in the area said the fertilizer sold to them contained stones.

    Kenya Insights understands SBL Kenya, under the stewardship of Mr. Joe Kariuki, who is the company CEO, has been making inroads into some of Tanzania’s remotest farming districts, selling affordable fertilizer across towns and divisions, with the help and blessing of Tanzania’s largest fertilizer company, TFC (Tanzania Fertilizer Company).