Government commits to resolving KCC terminal dues and reviving Kimuri Coffee Factory, says CS Oparanya

𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬
𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝟐 𝐀𝐩𝐫𝐢𝐥 𝟐𝟎𝟐𝟓

The Cabinet Secretary for Cooperatives and Micro, Small & Medium Enterprises Development, Hon. Wycliffe Ambetsa Oparanya, addressed the Senate Plenary to respond to queries from various Senators--including Eddy Oketch (Migori) and Veronica Maina-- regarding critical issues in the cooperative sector.

The discussion primarily focused on the unresolved matter of terminal dues for former employees of the Kenya Cooperative Creameries (KCC) and the revival of the Kimuri Coffee Factory in Kigumo Constituency.

In response to Sen Oketch’s question on the delayed payments to KCC employees whose contracts ended in 1999, Oparanya provided a comprehensive history of KCC’s financial troubles. He outlined that KCC Ltd, established in 1925 and later incorporated as a cooperative in 1932, was placed under receivership in 1999 due to financial difficulties. The company’s assets were sold off to a private entity, KCC (2000) Ltd. In 2003, however, the government repurchased these assets, leading to the establishment of New KCC Ltd in 2004 as a state-owned entity.

Despite a ruling by the High Court in favour of the former employees, who sought their terminal dues, the matter continued to the Court of Appeal. The court ruled in 2020 that New KCC Ltd was not responsible for KCC’s past liabilities, including unpaid benefits and Sacco shares. Nevertheless, the court urged the Attorney General to explore settlement options. In light of this, Oparanya confirmed that an Interministerial Committee, comprising the Ministry of Cooperatives, National Treasury, and Ministry of Agriculture, was formed to verify claims and explore a possible out-of-court settlement, pending budgetary approval from the National Assembly.

Addressing further concerns, Oparanya also acknowledged claims that salary deductions meant for cooperative shares had not been remitted. These will be examined as part of the ongoing review process.

On the revival of the Kimuri Coffee Factory in Murang’a County, Sen Maina had raised concerns over the factory’s decline due to dwindling membership, reduced coffee production and governance issues. Oparanya confirmed that the government, in partnership with the County Government of Murang’a, had developed a revival strategy. This would involve elections for a new management committee, training for new leadership, efforts to encourage farmer membership, and physical upgrades to factory infrastructure.

The government has allocated KES. 18.5 million for the 2025/2026 financial year to help restore the factory and support broader coffee sector revitalization efforts. In addition to these immediate measures, the government is enacting long-term structural reforms aimed at improving the coffee sector’s sustainability. These reforms include policy updates, better marketing strategies and expanding coffee production areas to enhance output.

Oparanya reiterated the government's commitment to addressing the outstanding dues of former KCC employees and to revitalizing the cooperative sector to better support smallholder farmers.