Giant coffee miller, KPCU, not out of the woods yet

Wakulima House owned by KPCU. In October 2009, the miller was placed under receivership by KCB over Sh644 million debt [PHOTO: FILE /STANDARD]

NAIROBI, KENYA: A decade ago, the Kenya Planters Cooperative Union (KPCU) stood tall. It was the pride of Kenya’s coffee industry. But in four years, the coffee miller has become a shadow of its former self. It was put under receivership over over Sh644 million debt, sending most farmers into oblivion.

The 77-year-old farmers’ organisation is planning to re-enter the coffee marketing business,  now in the hands of multi-national coffee firms. Last week, KPCU said Kenya Commercial Bank (KCB) had lifted its receivership after the two agreed on a new debt repayment schedule. But even before it starts operations, a new row has erupted, now, between current directors and the Ministry of Industrialisation and Enterprise Development where cooperatives fall. The Government, through the department of Cooperatives, wants the directors to seek fresh mandate from the members during countrywide elections to be held later this month.