A new investigative report has revealed how officials previously implicated in the loss of KSh117 million at Kangunu Farmers’ Cooperative Society resurfaced to form a new coffee society in Murang’a County, engaging in coffee hawking and other irregularities, raising alarm over regulatory oversight and farmer protection.
The Marga Farmers’ Cooperative Society, registered last year in Mathioya Sub-County, is now under scrutiny after the State Department for Cooperatives flagged serious irregularities in its formation and operations.
According to the report dated December 17, the society was registered using falsified documents despite its interim officials having been removed from Kangunu over financial improprieties totalling to Ksh 117 million.
Presenting the findings at a meeting with coffee farmers and stakeholders at Murang’a County government offices, Principal Cooperative Officer Charles Mugwika, said Marga had been purchasing coffee cherries in cash through agents across Mathioya and Kangema, a method associated with coffee hawking.
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“From the records and observations, the economic viability of Marga Society Limited is uncertain,” he said, noting that a rush to borrow bank funds in its first year signals weak viability and inability to meet obligations.
According to the report, among those implicated are Interim Chairman Geoffrey Maina (surcharged KSh7 million), Vice Chairperson Stephen Marioko (surcharged KSh108 million), and Secretary Margaret Wairimu Macharia (surcharged KSh989,000).
Investigators also linked former Kangunu Secretary Manager Peter Macharia Warahu to suspicious mobile money transfers totalling KSh4.9 million to Wairimu between May and November 2025, with no coffee sales recorded to justify the payouts.
The report recommends immediate suspension of Marga’s registration certificate, paving the way for cancellation and liquidation. Mugwika warned that Marga’s cash-based cherry buying exposed farmers to exploitation and loss of traceability.
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Further inconsistencies were uncovered in the registration process, including meeting minutes disowned by individuals listed as attendees. Mugwika confirmed that the Murang’a County government has initiated disciplinary action against officers who processed the flawed registration.
The revelations have sparked concern among farmers and stakeholders, with calls for tighter enforcement of cooperative laws to safeguard the integrity of the coffee value chain and prevent repeat abuses by previously sanctioned officials.
Mugwika noted that Murang’a County had formally acted on the flawed registration process, launching disciplinary measures against the officials involved in handling the paperwork.
By Enock Masaki
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