The debt-ridden Baricho Farmers’ Cooperative Society in Nyeri has been thrown into confusion after an audit revealed that a debt waiver granted by the government two months ago was a loan.
In September, Cooperatives Cabinet Secretary Wycliffe Oparanya and Mathira MP Eric Wamumbi visited the society to present a “gift” from President William Ruto.
Mr Oparanya and Mr Wamumbi told members that the President had given them about Sh63 million, ostensibly to bail them out of debt.
This was good news for a cooperative that is now reeling under a Sh300 million debt accumulated over the past two years.
But little did the 7,000 coffee farmers know that what the MP called a debt waiver was a government loan.
On Thursday, the farmers were stunned when an audit report commissioned by Mr Oparanya revealed that the ‘gift’ was an additional loan from the New Kenya Planters Cooperative Union (KPCU).
The beleaguered farmers will now have to pay the new loan at an interest rate of three percent.
Speaking at a special general meeting held at Karindundu Coffee Factory on September 9, Mr Oparanya said President Ruto had directed his ministry to launch an investigation into the alleged misappropriation of millions of shillings from coffee farmers.
The CS also ordered the Commissioner of Cooperatives, Mr David Obonyo, to start the probe immediately and submit a report within two months.
