Court annuls elections held by coffee firm

The entrance to the Kenya Planters’ Co-operative Union premises in Nairobi. FILE PHOTO |  NATION MEDIA GROUP

In Summary

• Mr Justice Weldon Korir ruled that the poll conducted last August was unlawful.
• The union was placed under statutory management on October 19, 2009 over a Sh644 million debt.

By THOMAS KARIUKI
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The long-running battle for the control of assets of the collapsed Kenya Planters Cooperative Union was likely to intensify following Thursday’s High Court nullification of recent board elections.

Mr Justice Weldon Korir ruled that the poll conducted last August was unlawful, as it did not involve bona fide members of the coffee firm.

He said the directors named after the KPCU went under were appointed on an interim basis and were, therefore, not mandated to oversee the internal affairs of the union, including presiding over elections.

The union was placed under statutory management on October 19, 2009 over a Sh644 million debt, which it had secured using its Wakulima House building, whose value was estimated at Sh2 billion.

Lawyer Gakoi Mwangi, for the former directors, told the court that the Cabinet Secretary for Industrialisation and Enterprise Development and the Commissioner of Co-operative Societies on June 11 and 25, issued notices to convene a special general meeting held on July 31, without the authority of the directors of KPCU.

“The notices of the meeting were issued secretly with no information given to the former directors. The government had no role, duty or authority over the running of the affairs of KPCU. They had no power to convene an meeting,” Mr Mwangi said.  

Mr Justice Korir said in his judgment that the election was “an aftermath of an illegal and unlawful process that conferred authority on the new managers elected in a process which did not involve all the stakeholders”.

The KPCU is the umbrella union of local coffee unions.

ALLEGATION DISMISSED

An allegation made against the current directors of introducing a rival union Kenya Cooperative Coffee Exporters (KCCE), was dismissed by the court, saying that “KPCU ought to up their game if they have to remain relevant in the market”.

“Allow the genuine members’ democratic right to elect leaders so that it can spur growth of the KPCU. Leave the KCCE out of your battles and allow the market forces to play their role,” the judge said.

The KPCU had accused the commissioner of co-operatives of plotting the downfall and takeover of the union by KCCE.