Former Kenya National Trading Corporation Limited chairman Hussein Tene Debasso.
The positioning for control of billions in loans from Afreximbank could be the reason behind the recent shakeup at the Kenya National Trading Corporation (KNTC) that saw board chairperson Hussein Debasso sacked and demoted to the less lucrative position of council member at the National Youth Service (NYS).
Before his sacking, Mr Debasso had voiced his opposition to the appointment of Ms Lucy Anangwe as the corporation’s Managing Director, but he was overruled by Investments, Trade, and Industry Cabinet Secretary Salim Mvurya.
Nation has established that the corruption-ridden KNTC is among the state agencies set to benefit from the Sh408.98 billion loan from the Africa Export and Import (Afrexim) Bank to support the economy in various sectors.
The loan is intended for export trading through Export Promotion Zones (EPZs) and to aid in the importation of food commodities to stabilize food prices, which is an additional mandate for KNTC.
“The financing is meant to support the importation of essential commodities, largely foodstuffs, to help the country cushion vulnerable members of society by steadying the prices of these commodities,” a source at KNTC, who spoke in confidence, told Nation.
The loan amount was approved early last year and was to be disbursed in mid-2023 but was delayed due to corruption issues at KNTC.
The funding was first revealed during a meeting between President William Ruto and the chairman of the board of directors of AfreximBank, Prof Benedict Oramah, in Nairobi on November 17, 2022.
“This will allow us to expand our engagement with Afreximbank on several investment areas,” the President said during the Nairobi meeting.
According to the President, the investment areas to which the loan will be channeled include infrastructure, agriculture, commercial irrigation, housing, the creative industry, and Micro, Small, and Medium Enterprises (MSMEs).
The Afreximbank loan is also expected to support manufacturing and agro-processing export development, such as setting up industrial parks and promoting intra-African trade under the African Continental Free Trade Area (AfCFTA), which is spearheaded by the African Union.
The ouster of Mr Debasso resulted in the appointment of former Mumias Sugar CEO and one-time Nairobi County Governor Dr Evans Kidero as chairperson of the KNTC board for three years, as announced in a gazette notice by President William Ruto on November 15, 2024.
On the day of his removal, Mr Debasso was given a soft landing by Public Service and Human Capital Development Cabinet Secretary Justin Muturi but was assigned the less glamorous position of a council member at NYS for a year and three months.
In November 2023, the Cabinet approved KNTC to spearhead the government’s initiatives to stabilise the cost of essential goods as local production dwindled due to unfavourable weather patterns.
The state corporation was authorised to import 2 million tonnes of sugar, 150,000 tonnes of rice, 125,000 tonnes of cooking oil, 80,000 tonnes of beans, and 25,000 tonnes of wheat duty-free.
KNTC has been plagued by numerous corruption scandals, including the Sh6.5 billion edible oil scandal currently under investigation by the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI).
The Senate is also investigating the matter, with Mr Debasso among the KNTC officials summoned before the Committee on Justice, Legal Affairs, and Human Rights (JLAHRC).
On November 5, 2024, Trade CS Mvurya wrote to Mr Debasso, directing the board he chaired to appoint Ms Anangwe as the corporation’s MD to replace Ms Pamela Mutua, who was sacked and arraigned over procurement issues.
However, a day later, Mr Debasso alerted the CS about ongoing investigations by state agencies into the Sh6.5 billion edible oil scandal and an adverse mention of the matter in a special audit by Auditor-General Nancy Gathungu.
Mr Debasso also informed CS Mvurya that Ms Anangwe had been adversely mentioned in the Senate and needed to clear her name before her appointment.
The CS ignored Mr Debasso’s advisory and proceeded to appoint Ms Anangwe through a hastily convened board meeting on November 6, 2024.
In the Senate, Marsabit Senator Mohammed Chute raised concerns, claiming that Ms Anangwe was implicated in the edible oil scandal but was being protected and promoted to bungle ongoing investigations.
However, KNTC, in a statement, denied that Ms Anangwe was under investigation and asserted that her appointment followed proper recruitment procedures.
