How officials linked to Sh117m Kangunu loss formed new coffee society

A report has revealed how former members of the Kangunu Farmers' Cooperative Society illegally registered another entity to engage in coffee hawking, among other malpractices. 

The inspection report indicates that last year the said individuals falsified documents and registered the Marga Farmers Cooperative Society in Murang'a.  

Dated December 17, the report by Charles Mugwika and Kennedy Otach has recommended the suspension of the society certificate, awaiting its cancellation, followed by the liquidation process. 

The presence of Marga society, the report outlined, threatened to weaken the market position of farmers as it was buying cherry in cash through agents positioned in strategic positions in Mathioya and Kangema. 

“From the records and observations, the economic viability of Marga Society Limited is uncertain, as it is not able to meet its financial obligations. The rush to borrow funds from banks in its first year of operations is enough evidence of the weak viability of the cooperative,” read the report. 

The report read by Charles Mugwika dated December 17 outlined that the Mathioya-based cooperative society founded last year is led by officials implicated in the syphoning of Sh117,048,669 of property of the Kangunu society in a period between 2018 and October last year.  

The inspection team established that the officials of Marga were bundled out of Kangunu society last year by Cooperative Cabinet Secretary Wycliffe Oparanya after they were listed with myriad malpractices. 

“Murang’a County Government has taken up the matter of the registration and disciplinary action against the officers who handled the registration documents,” said Mugwika, who read the report during a coffee stakeholders meeting at the county chambers chaired by Murang’a East Deputy County Commissioner Charles Muriithi.  

During the inspection, the team noted that the people who signed the acceptance on behalf of the proposed cooperative had been adversely mentioned in an inquiry report, therefore making the bylaws and the application for registration ineligible for processing by the office of the Commissioner. 

The former cooperative in Mathioya, Mr Karingu, the report detailed during interviews on the formation of Marga society, denounced attending a meeting at Goshen Hall in Kiria-ini market.  

“Karing'u, however, disowned the minutes, stating that he was not aware of such an organisation. Some members who were interviewed denied the existence of such a meeting and stated that they have never dealt with that officer,” the report further expounded.  

The report detailed how Marga Interim Chairman Geoffrey Maina Macharia was surcharged by the inquiry report for Sh7,095,262.90 syphoned at Kangunu society, and Stephen Marioko Interim V/Chairman was surcharged Sh108,642,472.  

Also adversely mentioned was Margaret Wairimu Macharia, the interim secretary, Sh989,540. 

The former secretary manager, Peter Macharia Warahu, at Kangunu, unearthed how he remitted Sh4,924,000 to Margaret Wairimu Macharia, a secretary at Marga Society, through his mobile phone between May 10th, 2025, and November 10th, 2025. 

“The above monies could not be described authentically as to what was being paid for, but transfers to other individuals could be traced, although there was no evidence of members’ payout, as the entire coffee cherry was in the store; hence, there were no sales to warrant any payout,” read part of the report. 

The auditors advised the county cooperative office to increase members' education, training and information to empower them to become loyal and to support the existing cooperatives. 

The government moved to conduct an inspection on Marga following complaints raised by cooperative officials from cooperative societies of Kamacharia, Kangunu, Kiru, New Kahuria, Kanjahi, Kiawanduma, Karuya, Nyakuru, Iye Go and New Kiriti. 

The officials of Marga, in their response, disputed all the allegations, citing them as malicious and employed to bring down a farmer's investment.