This archive report was first published on 2 October 2019.
Published on October 2, 2019, a performance audit by the State Department for Cooperatives revealed the dire state of coffee cooperative societies in Central Kenya. The audit, conducted on 25 cooperative societies in Nyeri County, found that many are facing financial difficulties due to poor management practices.
According to the report, 22 out of the 25 coffee societies in the county have been borrowing money to finance operations, leaving them vulnerable to collapse. The audit attributed this to lack of professionalism and poor management skills among society staff.
The report also highlighted the need for cooperative societies to adopt proper data management practices to avoid poor management. It recommended the training of management teams to adapt an online management system, making them more efficient in running the society.
Additionally, the audit found that most societies did not have ownership documents for their property, and the number of active coffee cooperative society members had been declining every year. The report warned that unless coffee societies embrace proper data management practices, they will continue to suffer from poor management.
On a positive note, the audit found that majority of the societies had benefited from a debt waiver and had written off the amount of debt in their books of accounts for 2017. However, farmers continued to experience delayed payments for coffee delivered.
Related Topics: coffee
