Six coffee processing facilities affiliated with Iyego Co-operative Society have shut down or transitioned to collection centers due to declining production and financial pressures, according to recent reports. The closures affect Nginda, Kariguini, Gikiuga, Kahaini, and Irembu factories, with managers now overseeing collection points to cut costs. Employees at these sites have faced delayed salaries, exacerbating concerns about sector stability.
Kiawanduma coffee factory, which separated from Rwaikamba Co-operative Society, established collection centers three years ago to ease transportation burdens for farmers. The facility reported 600,000kg of member production, aiming to reach 1.2 million kg capacity. Joseph Mburu Kamande, a former Mt Kenya region coffee farmers' chairman, noted decades of declining output and criticized poor marketing strategies as critical obstacles.
Iyego Co-operative Society chairman Rowland Ndegwa emphasized cost reductions aligned with production levels, stating closures were temporary. County cooperative chief officer Bernard Wanyoike disputed claims of widespread factory shutdowns, citing 144 active facilities and ongoing revival efforts. Meanwhile, Murang’a Governor Mwangi wa Iria urged a forensic audit of all factories to combat alleged coffee theft, calling it a complex syndicate impacting smallholders.
The governor highlighted a Sh1.2 billion debt waiver for farmers but warned of new financial crises. He criticized factory-level mismanagement over low prices, citing corruption at operational levels. Mugama Cooperative's planned Sh300 million Thika property sale faces legal challenges, as county authorities seek to prevent asset liquidation amid sector turmoil.
