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Embu Cooperative societies seek waiver on Ksh 90m loan – KBC




Twenty-four co-operative societies in Embu County are seeking the national government’s waiver on a 90 million shillings loan borrowed five years ago to set up a coffee milling plant which has since stalled.

Murue Cooperative Society Chairman John Maruku says the societies are unable to service the loan which has since ballooned to 127 million as the plant remains inoperable.

Since the laying of capstone five years ago Embu County Coffee Mill has remained dormant to the disappointment of farmers who had high hopes in the plant.

The mill now remains dormant as interest on the 90 million shillings loan continues to pile up. The farmers are now calling for speedy government intervention to save them from the debt pit.

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According to the mills stakeholders, the loan has ballooned to 127 million shillings in the course of the past five years.

Each co-operative society is obligated to pay 3.8 million shillings to clear the loan that was secured through on a parcel of land owned by the union of coffee cooperative societies.

Embu County government initially contributed 15 million shillings for a stake in the project and promised to further contribute 10 million shillings annually. so far it has only injected 40 million shillings in the plant.

The millers blame subdued production, brokers and lack of value addition within the coffee value chain to their current predicament.

Coffee production in the county last year fell to 11 million kilograms from 15 million kilograms in 2014 when the machinery was brought.



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