Concerns have emerged over the protection of coffee farmers in Murang’a County after an investigative report exposed serious irregularities surrounding the registration and operations of the Marga Farmers’ Cooperative Society of Mathioya Sub-County.
The establishment of the society last year raised questions about regulatory oversight and the safety of the county’s coffee value chain.
The investigations conducted by the State Department for Cooperatives, dated December 17, revealed that the society was registered through a flawed and possibly fraudulent process, despite its officials having been previously implicated in massive financial improprieties at Kangunu Farmers’ Cooperative Society.
According to the report, individuals who were removed from office at Kangunu by the cabinet secretary for cooperatives last year went on to register Marga Farmers’ Cooperative Society using falsified documents, a move that investigators say undermined cooperative laws and threatened farmer livelihoods.
The investigation team therefore recommended the immediate suspension of Marga’s registration certificate, paving the way for its cancellation and eventual liquidation.
In the report, the state department for cooperatives also warned that the society’s continued existence posed a significant risk to farmers by weakening the structured coffee marketing system.
Presenting the report before coffee farmers among other stakeholders in a meeting held at Murang’a county government offices, Principal Cooperative Officer Charles Mugwika noted that Marga was found to be buying coffee cherry in cash through agents strategically positioned across Mathioya and Kangema sub-counties.
The practice, he stated, is commonly associated with coffee hawking, an exercise that often exposes farmers to exploitation and loss of traceability.
“From the records and observations, the economic viability of Marga Society Limited is uncertain,” Mugwika said, adding, “The rush to borrow funds from banks in its first year of operation is enough evidence of weak viability and inability to meet financial obligations.”
The report further linked Marga’s interim leadership to the alleged siphoning of Sh117 million from Kangunu Cooperative Society between 2018 and October last year.
Those implicated include Interim Chairman Geoffrey Maina Macharia, surcharged Sh7, 095,262.90, interim Vice Chairperson Stephen Marioko, surcharged Sh.=-Sh108,642,472 and Interim Secretary Margaret Wairimu Macharia, surcharged Sh989,540.
The investigators also flagged out suspicious financial transactions involving former Kangunu Secretary Manager Peter Macharia Warahu, who admitted remitting Sh4, 924,000 through his mobile phone to Margaret Wairimu Macharia between May and November 2025.
The report noted that the payments could not be linked to legitimate member payouts, as coffee cherry remained in stores and no sales had occurred to justify the transfers.
Further raising alarm were inconsistencies in the society’s formation process. The report indicated that minutes used during registration were disowned by some individuals whose names appeared as attendees.
Mugwika further said the county government had initiated action against officers who processed the registration.
“The Murang’a county government has taken up the matter of the registration and disciplinary action against the officers who handled the documents,” he said.
The investigation followed complaints lodged by officials from several cooperative societies, including Kamacharia, Kangunu, Kiru, New Kahuria, Kanjahi, Kiawanduma, Karuya, Nyakuru, Iyego and New Kiriti, who raised concerns over coffee hawking and market destabilization.
Stakeholders led by Murang’a East deputy county commissioner Charles Muriithi, who chaired the meeting, urged the county cooperative office to intensify farmer education and training to strengthen loyalty at existing cooperatives and protect farmers from deceptive ventures.
In their response, officials of Marga Farmers’ Cooperative Society dismissed the allegations, terming them as malicious, aimed at sabotaging what they described as a genuine farmers’ investment.
They said they will scrutinize the report thoroughly and file a petition before court, dismissing any irregularities in the establishment of their cooperative.
By Bernard Munyao
