Corporate News

Coffee marketer raises the alarm over rogue agents

Share Bookmark Print Email
Email this article to a friend

Submit Cancel
Rating
Cannibalism of coffee contracts is a common practice as farmers seek to get high returns. Photo/FILE

Cannibalism of coffee contracts is a common practice as farmers seek to get high returns. Photo/FILE 

By ALLAN ODHIAMBO  (email the author)
Email this article to a friend

Submit Cancel


Posted  Wednesday, February 24  2010 at  00:00

A notable case of failure is the Kenya Planters Co-operative Union (KPCU), which is currently under receivership over a debt owed to Kenya Commercial Bank (KCB).

Share This Story
Share

KPCU, that at one time boasted of an estimated membership of 70,000 farmers and a 70 per cent market share has since sunk to the lowest owing to intense competition from new and efficient players.

A major setback for KPCU was poor management and failure to honour statutory obligations to various government and private agencies including farmers which prompted the government to forge a deal between Co-operative Bank and the Cooperative Development ministry to establish a new marketing firm that would cater for the needs of farmers as the giant firm wobbled in its day-to-day operations.

Mrs Murumba, however, remained optimistic KCCE would brave the setback and meet its set targets.

“We appreciate and commend coffee farmers for the visionary strategic initiative in forming KCCE that will forever change the fortunes of the coffee industry in Kenya,” she said.

« Previous Page 1 | 2