Death knell sounds for KFA

The Kenyan Government has found it difficult trying to rescue the Kenya Farmers Association from auctioneers because it had been changed into private property, Agriculture minister William Ruto said over the weekend.

He said some individuals had changed the ownership of the institution into private property, and though the State has tried to rescue it on many occasions, its hands are tied because it has little say over it at the moment.

“If KFA was in the category of a cooperative society, we would have already rescued it, but there is little we can do as a government, because it is private property,” the Eldoret North MP said in Eldoret. Earlier in the month, auctioneers asked interested buyers to purchase the association’s assets that include 10 go-downs and 29 residential houses in Nakuru and Eldoret town.

Three batches of prime industrial property in Eldoret Town were also advertised for sale. The move cast a dark shadow over plans to revive the once-thriving organisation. A few days later, the association got temporary reprieve after the high court extended orders blocking the auction of its property.

Up for mention

Lady Justice Murugi extended the orders, which relate to a case filed by the association last year, until November 26, when the case will come up for mention before her colleague, Mr Justice William Ouko. KFA, whose assets are estimated to be more than Sh2 billion, risks losing all these at the fall of the harmer to offset a debt of Sh500 million that it owes the National Bank of Kenya (NBK).

Farmers believe that KFA can bring down the prices of farm inputs and its auction, for a ‘small debt’, would be a blow to Kenyans. The government had in the past offered to bail out the organisation to the tune of Sh2 billion, but the money was not released due to organisational changes effected two years ago.

KFA changed its status from a cooperative movement into a limited liability company, meaning the money formerly guaranteed by the government through the Ministry of Cooperative Development in 2003 could not be processed.