Feeding on Air: New York State Probe Reveals Suppliers’ False Claims of Sh6.2 Billion

Kenya’s anti-corruption investigators have uncovered a major scandal involving phantom fertilizer supplies worth Sh6.2 billion ($48.5 million), in what appears to be another case of government funds being siphoned through fictitious procurement schemes.

The Ethics and Anti-Corruption Commission (EACC) probe has revealed that several companies contracted to supply fertilizer to the National Cereals and Produce Board (NCPB) made false claims about deliveries that never materialized, yet they received full payment from state coffers.

According to investigation documents obtained by Standard Media, at least 12 companies are implicated in the scheme that saw the government pay for 124,000 metric tonnes of fertilizer that farmers never received. The scandal has raised serious questions about oversight mechanisms within Kenya’s agricultural supply chains and public procurement systems.

“What we’re seeing is a sophisticated fraud where paperwork shows complete deliveries, but physical verification confirms these supplies simply don’t exist,” said a senior EACC investigator who requested anonymity because they aren’t authorized to speak publicly about the ongoing investigation.

The scandal comes at a particularly difficult time for Kenya’s agricultural sector, which has been struggling with climate change impacts, rising production costs, and food security challenges. Fertilizer is a critical input for the country’s staple crops, particularly maize, and its availability directly impacts national food security and inflation rates.

Agriculture Cabinet Secretary Mithika Linturi acknowledged the investigation but declined to provide specific details. “We are cooperating fully with the EACC and other investigative agencies. Anyone found culpable will face the full force of the law,” Linturi stated during a press briefing in Nairobi.

The fraud appears to have exploited weaknesses in NCPB’s verification and distribution systems. Investigators discovered that delivery documentation was falsified, with forged signatures and tampered weight measurements. In some cases, warehouses listed as storage locations for the phantom fertilizer were either non-existent or used for entirely different purposes.

Farmers’ organizations across the country have expressed outrage over the scandal. The Kenya Small-Scale Farmers Forum chairperson, Martha Wangari, called it “a betrayal of the highest order” that directly threatens food security.

“While we struggle to afford inputs, billions that could have subsidized genuine fertilizer disappear into thin air,” Wangari said. “This corruption translates directly to hunger for ordinary Kenyans.”

The implicated companies include both established agricultural suppliers and relatively new entities that appear to have been specifically created to tap into government procurement opportunities. Some have directors with connections to political figures, according to company registry documents reviewed by investigators.

Economic analysts point out that this scandal represents a significant portion of Kenya’s annual fertilizer budget. The Sh6.2 billion would have been enough to subsidize fertilizer for approximately 2 million small-scale farmers, potentially boosting crop yields by 30-40 percent according to agricultural extension estimates.

“This isn’t just about missing money; it’s about missing meals on Kenyans’ tables,” said Dr. Jacinta Mueni, an agricultural economist at the University of Nairobi. “The multiplier effect of this fraud will be felt throughout the economy, from reduced agricultural output to increased food imports and higher consumer prices.”

The EACC has already frozen several bank accounts associated with the implicated companies and is preparing to question dozens of NCPB officials who approved the payments despite the non-delivery of goods.

This scandal follows a familiar pattern in Kenya’s public sector, where procurement fraud has been uncovered in multiple ministries and state corporations over the years. Previous high-profile cases include the National Youth Service scandal and the Ministry of Health’s “COVID millionaires” affair.

Parliamentary oversight committees have pledged to conduct their own investigations. The Public Accounts Committee chairperson has announced plans to summon current and former Agriculture ministry officials to explain the lapses that allowed the fraud to occur.

As the investigation continues, the EACC has indicated that the first prosecutions could begin within weeks, with charges potentially including conspiracy to defraud the government, forgery, uttering false documents, and abuse of office.