Kenya Planters Co-operative Union to pay farmers Sh134m

Kenya Planters Co-operative Union board will in the next two weeks' pay Sh134 million to farmers who had not been paid before it was placed under receivership by KCB in 2009.

Directors said the growers will receive the arrears after an audit of the coffee sale documents. Chairman David Gatei said in Nairobi yesterday that the board has secured funds from local lenders to pay the growers and employees. 

"We urge the farmers to present to our officers for verification all the documents they own on coffee sales that took place as from July 14, 2014," said Gatei.

"The money we are paying is after we used one of our assets' title deeds to secure a loan from a commercial bank."

He said the Sh134 million is part of the debts amounting Sh3 billion the institution had not paid before receivership. The arrears were incurred before the institution was declared insolvent over a debt of Sh644 million by the bank. The announcement comes a few days after KCB lifted the receivership.