Reprieve as state averts auction of coffee society in Embu over Sh 69 million loan

BY SAMUEL WAITITU KNA 

It was a reprieve for coffee farmers affiliated with the Gakundu Farmers’ Cooperative Society in Manyatta Constituency, Embu County, after the government intervened to prevent an auction of their assets over a loan of Sh. 69 million.

The society was set to have its assets auctioned on January 30 due to a loan of Sh. 50 million taken by the society’s management in September 2024 from the Commodities Fund, which had accrued to Sh.69 million due to unpaid interest.

The assets targeted for auction include a four-acre parcel of land belonging to Gakui Coffee Factory and a half-acre plot housing the society’s main offices, which had been placed as security for the loan.

The development sparked an uproar among farmers who had previously moved to court in Embu to halt the scheduled auction. However, no orders were issued, as the concerned Environment and Land Court is currently in recess.

Following the outcry, Governor Mbarire pleaded with the Government to intervene to bail out the society prompting a Special General Meeting to be held and attended by Cooperatives and MSMEs PS Patrick Kilemi and Commissioner for Cooperatives Development David Obonyo.

During the meeting, PS Kilemi announced that through the intervention of the Government, the scheduled auction had been set aside to pave way for an application made by the farmers through the Governor for the loan to be written off.

“Through the intervention of the President and his Deputy, the planned auction has been set aside,” he announced to farmers amid cheers.

The famers who distanced themselves from the loan facility called for an inquiry to be instituted to unearth the mystery surrounding the loan.

“I want to categorically state that we were not involved in the process of taking the loan and we also don’t know for what purpose it was taken,” said farmer Benson Mbogo while asking to be given a waiver by the Government.

Following resolution to institute investigations, Gakundu FCS Chairman Robert Ndwiga called for security to beef up in their offices to ensure the suspects do not make an attempt to invade the offices to destroy evidence.

Commissioner for Cooperatives Development David Obonyo said inquiry will commence next week and the report made public upon completion.

“In case of financial malpractice, the management team that was there then will be held accountable and officials who will be adversely mentioned in the report will not be eligible to be members of any cooperative society in Kenya for the next 10 years as per the law,” he stated.