Don’t meddle in coffee union, co-op boss told

The High Court has restrained the Commissioner of Co-operatives from interfering with the management of Kenya Planters’ Co-operative Union for 90 days.

The court issued conservatory orders restraining Mr Patrick Musyimi after he called for fresh elections for directors at KPCU on Thursday, days after elections held on July 31 under his directive were declared null and void.

Mr Musyimi first ordered elections early in the year, which saw 15 directors elected but did not take office as the current board, led by Mr William Gatei, insisted their tenure had not ended.

Mr Gatei and his group of directors also questioned the procedures used to elect the new team, leading to the elections being declared un-procedural.

Justice Weldon Korir said after considering the arguments by the current board, the notices for elections should be suspended to give the applicants (Gatei group) time to move to the Court of Appeal for appropriate orders.

“That conservatory order be, and is hereby, issued to suspend the notices issued by (the commissioner) for a period of 90 days with effect from the date of this ruling (November 18). That the current directors remain in office during the pendency of the order.”

KPCU was placed under receivership in October 2009 by Kenya Commercial Bank over a debt of Sh644 million. Deloitte Consulting Ltd were appointed as the receiver managers.

The current board negotiated for the amount to be reduced to Sh400 million.

A total of Sh100 million was paid, leading to the lifting of receivership this year.

The remaining Sh300 million will be paid over 10 years without interest.