On February 12, 2020, the State extended the liquidation period of the old Kenya Planters Co-operative Union (KPCU) for a further six months, further delaying the sale of the troubled miller and settlement of creditors' dues.
Acting Commissioner for Co-operatives Development Geoffrey Njang'ombe appointed Mr. Stephen Kamau Njoroge and Anthony Maina Waithaka as liquidators in the co-operative union, effective February 3, 2020.
This extension means a further delay in the sale of KPCU assets and payment of the union's creditors, including banks and farmers.
Kenya Planters Co-operative Union (KPCU) was put under receivership by KCB in 2009, owing to its debt of over Sh700 million.
The 75-year-old company was also struggling with poor management and corruption, which accelerated its certain death.
According to reports, the cabinet Secretary for Trade, Peter Munya, ordered the liquidation of the union in 2020, a process which was initially expected to take six months.
The fate of the body's board of directors still hangs in the balance as the liquidation process continues.
Several allegations of theft have been made against the management, including instances where they sold coffee and withheld payment from farmers.
KPCU enjoyed a monopoly status for many years, milling and marketing coffee for small farmers who are grouped around factories scattered across the country.
However, the milling business was opened up to competition in 1994, and the marketing business was opened in 2002, reducing KPCU's influence in Kenya's coffee industry.
Kenya's high-quality coffee beans are sought-after by roasters who blend them with those from other regions.
