Five coffee farmers have initiated legal action to block the sale of Kenya Planters Cooperative Union (KPCU) assets, alleging their share interests will be jeopardized during the process. The plaintiffs—Josphat Kimani, Solomon Ndua, Peter Ngangari, Peter Wangengi, and Karanja Gathiru—argue that the planned liquidation of the 1937-founded cooperative threatens their investments. Their lawyer, Thuita Guandaru, stated the farmers believe KPCU remains viable and that the sale could lead to significant losses.
The dispute centers on a court challenge to the asset sale, which follows KPCU's 2009 receivership by Kenya Commercial Bank over a Sh644 million debt. The cooperative, once a dominant coffee miller with an asset base exceeding Sh5 billion by 2014, has declined due to sector liberalization, loss of milling monopoly in 1996, and governance issues. Liquidators have been appointed to oversee the sale, while the Directorate of Criminal Investigations probes the firm's collapse.
The farmers claim they were informed of KPCU's liquidation during a visit to its headquarters, where police reportedly directed them to leave. They question the involvement of the commissioner of cooperatives in what they describe as the unlawful liquidation of a solvent entity. The case highlights tensions between private shareholder interests and government-led restructuring efforts in the coffee sector.
