The recent reshuffle at the Kenya National Trading Corporation (KNTC) has sparked significant controversy, with critics questioning the appointment of former Mumias Sugar CEO and ex-Nairobi Governor Dr. Evans Kidero as the new Chairman. The changes come as the state corporation is set to oversee the anticipated disbursement of a Ksh 408.98 billion loan from Afreximbank, raising fears of potential mismanagement and corruption.
The reshuffle has seen Trade Cabinet Secretary Salim Mvurya appoint Ms. Lucy Anangwe as Managing Director, a move that overruled the opposition of former Board Chairperson Hussein Debasso, who was subsequently dismissed. Ms. Anangwe’s appointment has drawn sharp criticism due to her alleged involvement in the ongoing Ksh 6.5 billion edible oils scandal. Observers have noted that her installation, alongside Kidero’s appointment, could open the door to renewed corruption within the corporation.
The Afreximbank loan, which was approved in 2023, had been delayed due to prior corruption scandals at KNTC. The funds are intended to support Kenya’s economy, with a focus on agriculture, export trading, and stabilizing food commodity prices through imports of sugar, rice, and wheat. However, insiders fear that with Kidero and Anangwe at the helm, a significant portion of the loan may be misappropriated.
Kidero’s leadership tenure has been marred by allegations of mismanagement and corruption from his time as CEO of Mumias Sugar and Nairobi Governor. His new role at KNTC has reignited skepticism about the government’s commitment to addressing graft in key institutions.
Public confidence in KNTC’s ability to manage such a substantial loan remains low, with civil society groups calling for greater transparency in the handling of the funds. Critics argue that the reshuffle appears to prioritize political expediency over competence, potentially putting the country’s economic recovery efforts at risk.
As public scrutiny intensifies, the government faces growing pressure to ensure that the Ksh 408.98 billion loan is used for its intended purposes and does not fall prey to corruption, which has historically plagued Kenya’s public institutions.
