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{
    "id": 1255374,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1255374/?format=api",
    "text_counter": 113,
    "type": "speech",
    "speaker_name": "Hon. Kuria",
    "speaker_title": "The Cabinet Secretary for Investments, Trade and Industry",
    "speaker": {
        "id": 13160,
        "legal_name": "Moses Kuria",
        "slug": "moses-kuria"
    },
    "content": "(j) All invoices for the procurement, inspection, and acceptance certificate of payment are officially received by the supply chain department for purposes of payment. We have an annexure attached which can be referred to for more details. Turning to Question 15(c) on how many companies were awarded business and those currently importing goods, the type and packaging of the commodities being imported during the Financial Years 2021/2022 and 2022/2023. KNTC engaged 11 suppliers for various commodities in the Financial Year 2022/2023 as tabulated in Annexure 15b. KNTC was not dealing with the importation of commodities in the year 2021/2022. On the financial state of KNTC and how much has been paid to respective suppliers and what is outstanding. The corporation relies on internally generated revenue to finance its operations. It is a corporation that relies on internally generated funds from selling goods or at a minimal profit. We are constantly trying to balance between maintaining low prices for our customers and generating enough income to cover our administrative costs. The financial status of KNTC reflects this delicate balance as we strive to keep our prices affordable without compromising the quality of our products or the financial sustainability of the corporation. Mr. Speaker, Sir, the financial performance of the Kenya National Trading Corporation (KNTC) over the past years is contained in that table. You shall see that in terms of net income, for financial year 2022/2023, is at Kshs67 million. The previous year, financial year 2021/2022, it was Kshs96 million. In terms of recurrent revenue, as we speak, we are Kshs359 million down from Kshs405 million in the preceding year. On the amount paid to respective suppliers and balances outstanding, KNTC has procured imported commodities valued at Kshs22.2 billion as of 30th April, 2023. Commodities worth Kshs4.8 billion have been delivered and no payments have been made to date to the suppliers since the letters of credit (LCs) are yet to mature. It must be remembered that the kind of business that we are talking about here, does not happen by direct cash payment or transfers. It happens by LCs. So, it is only as and when the LC matures, that the payments become due. This gives the Corporation time to be able to sell the product in the market. That is why this instrument is used to extend that time. Be as it may, as we speak, the value of goods delivered so far is Kshs4.8 billion. I will refer you to Annex 15(c)(ii) for the detailed breakdown of procured imported commodities and the status for supplier payments. Thank you."
}