Farmers offer to pay off Sh650m KPCU debt

By Nancy Akinyi

Coffee farmers want to salvage their miller from receivership by contributing Sh1,000 each to pay off Sh650 million debt.

In an application before court, the 750,000 farmers want to be enjoined in a suit in which the giant miller, Kenya Planters Co-operative Union (KPCU) is battling auction and sale of its assets.

They told trial judge, Justice Muga Apondi, that it was imperative that they were allowed to come on record to enable them make presentation on payment of the outstanding debt.

KPCU, through advocate Gichuki King’ara, has been battling Kenya Commercial Bank and receiver managers over the said debt.

Mr King’ara argues that before placing the miller under receivership, the bank ought to have considered the plight of coffee farmers who depend on the produce for a livelihood.

KPCU claims placing it under receivership, and the purported auction of the building and its assets, are in bad faith.

Through their respective associations and organisations, the farmers claim placing the miller under receivership has jeopardised their interests.

Through lawyer Anthony Muriithi, the farmers claim contributing Sh1,000 each to lift the said receivership pending determination of the case is one of the mechanisms they have in place to settle the dispute.

The farmers have accused receiver managers of taking over and closing all the coffee mills, leaving them in a dilemma as to where to process their coffee.

Four co-operative societies are representing the farmers.

Justice Apondi will this morning give directions on the way forward.