Coffee farmers in Manyatta fight to save Cooperative from auction over Ksh.60M debt

The Gakundu Coffee Cooperative Society, representing nearly 10,000 local farmers, is battling to protect its assets after failing to repay a Sh. 50 million loan borrowed in 2014 from the Commodity Fund. 

The loan, intended to boost operations across four factories, has ballooned to Ksh.60 million due to accrued interest.

According to the cooperative's chairperson, Robert Ndwiga, efforts to repay the debt have been hampered by declining coffee production, exacerbated by the effects of climate change. 

"The reduced coffee production has severely affected our revenue streams, making it impossible to settle the debt," Ndwiga explained. 

He warned that without government intervention, the auctioning of the cooperative's assets would devastate thousands of farmers.

Farmers like Bernard Murimi have expressed frustration, accusing the government of neglecting their plight despite overwhelming support during the last election.

 "We voted for this government, hoping it would address our challenges, but our struggles remain unmet," Murimi lamented. He called for urgent intervention to safeguard the future of coffee farming in the region.

In a show of solidarity, Manyatta MP Gitonga Mukunji accompanied the farmers to Embu Law Courts, where they sought an injunction to prevent the auction. Mukunji criticized the government for failing to act despite Parliament allocating Sh. 2 billion to clear debts owed by coffee cooperatives to the Commodity Fund.

"It is disheartening that the cooperative's assets are on the verge of being sold. The government must act swiftly to avert this crisis," Mukunji stated. He urged Cooperative Cabinet Secretary Wycliffe Oparanya to step in and save the society from collapse.

The farmers now await the court's decision, hoping to secure a lifeline for their cooperative and protect their livelihoods. 

As the case unfolds, the situation highlights the broader challenges facing Kenya’s coffee sector, including declining production, financial instability, and a pressing need for government support.