On May 14, 2020, the Treasury announced a significant shift in its strategy regarding the Kenya Planters' Co-operative Union (KPCU), setting a sales target of Sh5 billion by June next year.
This decision marks a reversal of the initial plan to liquidate the debt-ridden coffee organisation, which was announced by Cabinet Secretary Peter Munya in 2019.
According to budget documents released to Parliament last week, the Treasury aims to double the amount marketed in the following year to Sh10 billion and raise it again to Sh20 billion by June 2023.
The move raises questions about whether the government intends to change the management of the company or allocate cash to it in the course of the year.
Despite the reversal, the Treasury has not allocated any specific funds for KPCU apart from the Sh2.7 billion it received in February this year for onward lending to farmers.
