Government extends liquidation of KPCU by six months

Government extends liquidation of KPCU by six months

February 10, 2020 0 By mykenyancareers
MAIZE BAGS - Government extends liquidation of KPCU by six months
In a gazette notice, Acting Commissioner for Co-operative development Geoffrey Njang’ombe said the liquidators failed to meet the earlier set target of August 2019, creating the need of an extension to finalize on the sale/FILE

NAIROBI, Kenya, Feb 10The government has extended the liquidation of Kenya Planters Cooperative Union for another six months, starting February 3rd 2020. 

In a gazette notice, Acting Commissioner for Co-operative development Geoffrey Njang’ombe said the liquidators failed to meet the earlier set target of August 2019, creating the need of an extension to finalize on the sale.

The Acting Commissioner appointed Stephen Kamau Njoroge who is the assistant director of the Cooperative Unit and Anthony Maina Waithaka as the Principal Cooperative Auditor of Murang’a County to oversee the liquidation process for another stretched period.

The Cash trapped KPCU was last year placed under receivership by Cabinet Secretary Trade and Industrialization Peter Munya under who said the union does not benefit Kenyan farmers.

“Apart from mismanagement and corruption, the union has also failed to comply with the provisions of the Cooperatives Act on proper management of coffee farmers’ assets, which is why we are liquidating it,” Munya announced last year.

The liquidation of the union was also aimed at setting the stage for an independent assessment of the financial health of the troubled farmers union and subsequent disposal of assets.

Its assets are estimated to be worth Sh6 billion, and the joint liquidators were authorized to seize them and anything else that will help in liquidation, including books of accounts.

KPCU draws its membership from over 703,000 farmers representing over 300 Co-operatives and about 2,000 Estate farmers owning small, medium and large-scale farms.

It has an installed milling capacity of 150,000 metric tonnes of clean coffee per year, with infrastructure located in Nairobi, Tala, Sagana, Meru, Nanyuki, Nakuru, Bungoma and Kisumu. The company can mill 34 tonnes per hour.