The Government has cleared the KSh 185 million debt that was owed to KCB Group by coffee miller New Kenya Planters Co-operative Union(KPCU).
The move lifts KPCU out of receivership that has crippled its operations for decades. The defunct coffee miller has been under receivership since 2009 after it failed to honour its financial obligation amounting to over Sh700 million, owed to the lender, lawyers, and coffee farmers.
According to Chief Administrative Secretary in the Ministry of Agriculture Ann Nyaga, part of the KSh3 Billion received as coffee cherry fund has been used to clear this debt.
A newly reconstituted KPCU has also paid up KSh 68 Million owed to coffee farmers, an amount that has remained uncleared for years.
In January this year, President Uhuru Kenyatta appointed Ex-Nyeri County Cabinet Minister for Agriculture Mr Henry Gichui Kinyua as Board Chairman of the newly reconstituted Kenya Planters Co-operative Union (KPCU).
This marked the end of the road for the former KPCU, which had been taken over by the state following a presidential directive in August 2019.
In a cabinet meeting held on December 19th, 2019 a decision was made to revive the 76- year old coffee brewer.
The Government had earlier taken over the defunct KPCU following a presidential directive with the Acting Commissioner for Co-operatives Geoffrey Njangombe appointing liquidators of the giant coffee union.
“The liquidator has finished the exercise and I am currently waiting for the report any time. The process will end within six months that we had stated in February,” said Njangombe.
It is still unclear the liquidation process will also involve state intervention to clear the KSh 1.6 billion outstanding payments that the old KCPU still owes Coffee Board of Kenya.
As the liquidation team winds up its work, there is still anxiety whether the Government will reinstate the coffee brewer’s milling license so that it can access foreign markets that remain closed to the Union.
KPCU owns vast pieces of land and warehousing facilities as well as a supply network.
The Union’s Assets are valued at an estimated KSh 5 billion and represent the interests of over 800,000 coffee farmers.
After being in receivership and moribund state for years now, the financially-troubled Kenya Planters Co-operative Union (KPCU), could be finally waking up again.
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