NAIROBI, Kenya – A damning audit report has exposed massive corruption, mismanagement, and potential fraud in President William Ruto’s Sh31.5 billion fertilizer subsidy programme—revealing fake suppliers, toxic inputs, and missing stock that denied farmers critical support.
Auditor General Nancy Gathungu’s latest report, covering the 2023/24 financial year, found that the National Cereals and Produce Board (NCPB) disbursed fertilizer from companies that either didn’t exist or failed mandatory safety checks, including one linked to a falsified Kenya Revenue Authority (KRA) PIN.
Among the most troubling revelations was a Sh240 million contract awarded to Fifty-One Capital African Diatomite Industries—an entity that the Kenya Bureau of Standards (Kebs) later flagged for supplying unsafe fertiliser.
The firm’s tax details traced back to a completely different company, with no legal documentation proving a connection between the two.
“It was not clear how NCPB got into an agency agreement with Fifty-One Capital. This borders on fraudulent activities,” Gathungu stated.
Money Lost, Crops Damaged
In multiple counties, including Bungoma and Kakamega, farmers were left without recourse after receiving substandard fertiliser that led to crop failure.
Although some received replacements, over 1,960 bags were swapped without any recovery of the original faulty batches.
KEL Chemicals, another contracted supplier, received Sh139.7 million for fertiliser that Kebs later deemed unfit.
Despite a stop order, fertilizer worth Sh98.5 million had already been distributed to unsuspecting farmers.
Meanwhile, fertilizer and cereals worth Sh241.8 million reportedly never reached their destinations.
The hardest-hit counties included Kisii, Malaba, Bungoma, and Kitale. Investigators found no evidence of supplier follow-ups or recovery efforts.
“No explanation was provided as to whether a follow-up had been made with suppliers to ensure the fertilisers and cereals not delivered were recovered,” reads the audit.
In a bizarre twist, 981 bags of fertilizer from the shadowy 51 Capital—valued at Sh1.57 million—were seized by the DCI but have since been left to rot in NCPB depots. No effort was made to destroy or redistribute the stock.
Another major concern was the awarding of a Sh2.49 billion Urea fertiliser contract to MEMS Distributors, even after the tender evaluation committee recommended splitting the award due to a tie between two bidders.
NCPB’s management allegedly ignored this advice, risking legal fallout and possible financial losses through litigation.
Port Losses and Supply Gaps
The audit also tracked missing bags of fertiliser from Mombasa port to depots across the country.
Discrepancies—like 20 missing bags at one point and a 50-bag surplus at another—went unexplained, raising further doubts about inventory control.
“The recoverability of lost fertilizer and reconciliations of the products could not be ascertained,” Gathungu noted.
NCPB in Financial Turmoil
Amid the procurement chaos, the NCPB reported a Sh992 million loss for the 2023/24 financial year and is grappling with a negative working capital position of Sh3.1 billion—placing its future viability in question.
The findings have renewed calls for a total overhaul of fertiliser procurement and subsidy systems, with pressure mounting on the government to recover lost funds, punish culpable officials, and restore trust in public agricultural support programs.
