The Kenya Seed Company is on the spot for stocking varieties of seeds that were infected with Maize Lethal Necrosis Disease (MLND) in the year to June 2018.
The State-owned firm also held slow germinating maize seeds, increasing its storage costs.
“No reason was given by the management on why these Sh218 million obsolete stocks were not disposed leading to avoidable loss,” a fresh audit tabled in Parliament shows.
The report by Auditor-General shows that Kenya Seed Company (KSC) made provision of Sh250,177,000 for obsolete stocks in the statement of profit and loss and other comprehensive income.
“Examination of records made available for audit revealed that varieties of raw maize worth Sh217,848,520 was infected with MLND and slow germination as reported by the Kenya Plant Health Inspectorate Service (Kephis),” the report dated June 17, 2019 states.
The report shows that 1.7 million kilogrammes of maize variety PH4 worth Sh124.9 million was the most affected by MLND.