KPCU liquidation period extended by six months

The State has extended the liquidation period of the old Kenya Planters Co-operative Union (KPCU) for a further six months, further delaying the sale of the troubled miller and settlement of creditors’ dues.

Acting Commissioner for Co-operatives Development Geoffrey Njang’ombe has picked Mr Stephen Kamau Njoroge and Anthony Maina Waithaka to act as liquidators in the co-operative union beginning February 3, 2020.

This means a further delay in the sale of KPCU assets and payment of the union’s creditors including banks and farmers

KPCU was put under receivership by KCB #ticker:KCB in 2009, owing to its debt of over 700 million.

The 75-year-old company was also struggling with poor management and corruption, which accelerated its certain death.

Last year, Peter Munya, the cabinet Secretary for Trade order the liquidation of the union, a process which will take six months.

The fate of the body’s board of directors, however, still hangs on the balance as the liquidation process continues.

This follows several allegations of theft, including instances where the management sold coffee and withheld payment from farmers.

KPCU enjoyed a monopoly status for many years, milling and marketing coffee for small farmers who are grouped around factories that are scattered across the country.

But the milling business was opened up to competition in 1994. Then the marketing business was opened in 2002, reducing KPCU’s influence in Kenya’s coffee industry. Kenya’s high quality coffee beans are sought- after by roasters who blend them with those from other regions.

While the independent assessment on the financial health of the troubled farmers union and subsequent disposal of assets was ongoing, the government revived it and rebranded it New KPCU. Assets owed by the old KPCU, estimated to be worth Sh6 billion, were also transferred to the New KPCU subject to the ongoing liquidation.

Also transferred were the books of accounts.