Liquidation period for KPCU is extended
The government last week extended the liquidation period of the once-giant coffee miller Kenya Planters Co-operative Union (KPCU) for a further six months, delaying the sale of the troubled entity and settlement of creditors’ dues.
In a gazette notice, the Commissioner of Co-operative Development David Obonyo extended the tenure of Mr Stephen Kamau Njoroge, assistant director of Co-operative Audit for the period.
Mr Obonyo said the new extension will not exceed six months. Mr Njoroge had been appointed as the joint liquidator with Anthony Maina Waithaka, but the latter’s term was not extended.
The troubled miller halted its operations after running out of funds to keep it on its feet, due to poor management, allegations of corruption and theft.
It consequently sent home all its staff and suspended selling of coffee at the Nairobi Coffee Exchange auction leaving millions of farmers uncertain of what will happen to their produce.
KPCU was placed under receivership in October 2009 over a debt of Sh700 million owed to Kenya Commercial Bank. Deloitte Consulting Ltd was appointed receiver managers.
The receivers were there up to July 2014 when the lender and KPCU signed a deed of settlement, returning management to the board of directors.