NCPB’s strategy to increase debt collection

For years, the National Cereals and Produce Board (NCPB) has faced difficulties in managing the debts owed to it. These debts had hampered its ability to operate smoothly and successfully discharge its mandate.

As the Council strove to improve the viability of its business operations, clearing debts became the critical first step towards good financial health.

The Council takes all debts seriously and strives to ensure that they are settled and that all of its assets are used properly and protected against misuse.

The Board has instilled discipline in the liquidation of debts by applying a strong strategy of strict compliance and implementation of relevant policies.

Elaborate rental guidelines, debt management policy, credit policy and business processes have been put in place with transaction automation.

These measures have paid off, resulting in increased revenue generation.

The guidelines have ensured that our customers are served with a high level of command and certainty. Hence, it has improved our relationship with our clients and also removed personal discretion in service delivery.

The Council is ISO 9001:2015 certified, which standardizes procedures and ensures consistency in customer service.

As the NCPB works to collect the debt, those who default will be prosecuted by debt collectors.

Besides debt collectors, the Council also uses legal means to ensure that the money is paid. If a tenant defaults and refuses to vacate NCPB premises, auction services are also sought. This strategy was quite successful.

We have cultivated good relationships with our tenants and will continue to communicate positively with them.

The Commission is open to discussions on how tenants facing rent payment difficulties can reschedule and offer reasonable payment plans. Government debts have largely been paid and we are suing other agencies to pay them off.

The liquidation of state debts was achieved through a close working relationship with the National Treasury through the Ministry of Agriculture, Livestock, Fisheries and Cooperatives.

The debt clearance helped the Council clear what we owed farmers for maize deliveries and farmers who have yet to be cleared by the Ethics and Anti-Corruption Commission (EACC) have not have not been paid for the 2017/2018 maize buying season.

We also paid what we owed to transporters and millers.

Part of the KCB fertilizer subsidy loan has also been paid and we urge the government to settle the balance.

We have settled all our outstanding invoices and all suppliers are paid upon delivery of goods and services.

Besides aggressive debt collection to improve the financial health of NCPB, the board has undergone a change in organizational culture.

Central to these reforms is the NCPB Now philosophy which guides us to do things with a sense of urgency, immediacy and precision.

It encourages teamwork and personal responsibility.

NCPB Now aims to increase efficiency in service delivery.

Human capital productivity has been improved through an elaborate performance management system.

This has seen staff undergo on-the-job training in their specific areas to improve skill sets, increase their competence and promote integrity.

In a nutshell, our debt collection and financial management practices coupled with debt liquidation strategies on government debt, leasing and commodity trading have helped NCPB make significant progress in its operations.

Joseph Kimote, Director General, National Cereals and Products Board