State in bid to avert ‘coffee wars’

The turn of events in the coffee industry has alarmed the government prompting a series of meetings in a bid to rescue the sector.

Lawyer Waweru Gatonye told a Judge in Nairobi that the government was worried over the legal tussle between the Coffee Board of Kenya (CBK) and the Kenya Planters’ Co-operative Union (KPCU) adding that the meetings were aimed at pre-empting the likelihood of chaos if the “war” persisted.

Lifted ban

This was after CBK suspended KPCU’s trading licence over the latter’s failure to “comply with its statutory obligations.”

The ban was, however, lifted on Monday following a consent recorded before Lady Justice Roselyn Wendoh.

Mr Gatonye said stakeholders in the coffee industry first held a meeting with the Ministry of Agriculture and later with the Ministry of Cooperative Development and Marketing.

According him, the talks were “going on well and soon issues of reconciling of accounts and meeting statutory obligations will be agreed upon.”

Although CBK’s lawyer Peter Ochieng’ denied knowledge of such meetings, Lady Justice Wendoh rejected his application to adjourn the case saying she was satisfied by reasons advanced by Mr Gatonye.

Mr Gatonye also told the court that KPCU’s managing director was out of the country and, therefore, unable to file more response to CBK’s allegations as anticipated.

Trading rights

The two statutory bodies are fighting over the trading rights at the weekly Nairobi Coffee Auction. CBK suspended KPCU’s licence accusing the latter of failing to remit sale proceeds among other statutory obligations.

KPCU has denied the allegations and says the move harbours ulterior motives.

Whereas the Coffee Board accuses KPCU of failing to pay them some Sh147 million, the latter accuses CBK of withholding its Sh47 million.

The court directed the lawyers to file all their documents by Tuesday ahead of the hearing on February 20.

The order lifting the ban will remain in force until the court decides whether KPCU has a case.