How New KCC Lost Millions Of Shillings To Collapsed Supermarkets

Meanwhile, pressure is mounting on the New KCC LTD Managing Director Nixon Sigey to explain the ethnic composition of the top management which seems to favour one ethnic group. Apart from the MD, other senior staff from the same region are Stacy Too who is the head of Corporate Affairs, Damaris Chirchir who is the Chief Manager of Factory Operations, Linet Boit who is the head of marketing and Business Development and Marusoi Burgho who is the Chief Manager Internal Audit

A report by the Auditor General reveals that New KCC Ltd was owed a total of Ksh. 1,677,422,381 by five supermarkets which by the time of the audit were being carried out; the supermarkets were undergoing serious financial and management problems. According to the report, Tuskys Supermarkets Limited owed New KCC Ksh. 168,339,179.51, Uchumi Supermarkets Limited Ksh.88,500,034.84), Nivas Supermarkets Limited Ksh. 217,182,935.00 and Nakumatt Holdings Limited Ksh.290,690,273.00.

New KCC Ltd Managing Director Nixon Sigey

The report indicated that by the time the audit was done, Uchumi Supermarkets Ltd was undergoing receivership proceedings while Nakumatt Holdings Ltd was in liquidation. The status of Tuskys Supermarkets Ltd has not yet been determined and only Naivas Supermarket Ltd is currently operational. What is not known is whether New KCC Ltd managed to recover the millions from the four supermarkets which are currently not operational.

Meanwhile, pressure is mounting on the New KCC LTD Managing Director Nixon Sigey to explain the ethnic composition of the top management which seems to favour one ethnic group. Apart from the MD, other senior staff from the same region are Stacy Too who is the head of Corporate Affairs, Damaris Chirchir who is the Chief Manager of Factory Operations, Linet Boit who is the head of marketing and Business Development and Marusoi Burgho who is the Chief Manager Internal Audit. The MD’s fate also seems to be hanging in the balance as his appointment for the third term remains contested in court. His term was extended for three years by former CS Peter Munya after his second tenure at the helm came to an end in December 2021.

The gazette Notice reads “In exercise of the powers conferred by section 6 (1) (b) of the State Corporations Act, the Cabinet Secretary for Agriculture, Livestock, Fisheries and Co-operatives appoints Nixon Sigey to be the Managing Director of the New Kenya Co-operative Creameries Limited, for a period of three (3) years, with effect from the 1st January, 2021”.

Mr Sigey was first appointed to the position in January 2015 and the three-year contract was renewed in January 2018 ending in December 2020.

However, a case challenging his reappointment for the third term has been filed at the Labour Court. In the case, David Adema sued Sigey for continuing to serve as New KCC Managing Director beyond a period of six years. In his petition, Adema said the CEOs of state corporations are supposed to serve for a three-year term renewable once subject to performance evaluated by the board, but Sigey has violated these rules.

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