Doubts once again circle the Kenya Planters Cooperative Union

Years ago the Kenya Planters Cooperative Union (KPCU) was the pride of the nation’s coffee industry, but the bubble burst. The livelihoods of farmers across the country were put under threat and the coffee miller itself entered administration on more than one occasion due to lingering debts.

But now with an agreement in place with the Kenya Commercial Bank, and under the guidance of a number of multinational coffee firms, it is about to re-enter the sector once again.

Well, that was the plan before boardroom bickering broke out as the current crop of directors has entered into a verbal sparring contest with national politicians, thrusting the phoenix-like rebirth of the long-standing Kenyan millers into more short-term doubt, the Standard reports.

The phrase ‘out of the frying pan and into the fire’ comes to mind.

The Government wants the KPCU to seek a fresh mandate from their members regarding their ambitious plans; the directors of the KPCU say that a prior agreement – agreed by a temporarily elected board – remains valid and has dismissed the claims.

“We were given a three year mandate last year by the farmers. Further, the government has not communicated to us formally,” said the Chairman of the board, William Gatei.

The board want to cap coffee prices as well as launch an ambitious regeneration process on property to attract high rent, and such see higher profits.

Sources that have spoken to members of the Kenyan press have also claimed that the current KPCU directors want to change the structure of the company to create space for new investors. There are also rumours abound that one prominent Nairobi businessman was to purchase a near 20% stake in the miller, but the bid was rejected due to fears how other company holders would react to the deal under the current set up.

These uncertainties have cast a dark cloud over the historic KPCU, which has been in operation for nearly eighty years before being placed in receivership after amassing debts of $7.3m.