Concerns have been raised over the protection of coffee farmers in Murang’a County following an investigative report that uncovered serious irregularities in the registration and operations of Marga Farmers’ Cooperative Society in Mathioya Sub-County.
The society’s establishment last year has drawn scrutiny over regulatory oversight and the integrity of the county’s coffee value chain.
Investigations by the State Department for Cooperatives, dated December 17th, found that the cooperative was registered through a flawed and possibly fraudulent process, despite some of its officials having previously been implicated in major financial irregularities at Kangunu Farmers’ Cooperative Society.
According to the report, individuals who had been removed from office at Kangunu by the Cabinet Secretary for Cooperatives last year went on to register Marga Farmers’ Cooperative Society using falsified documents. Investigators said the move undermined cooperative laws and posed a threat to farmers’ livelihoods.
The investigation team recommended the immediate suspension of Marga’s registration certificate, paving the way for its cancellation and eventual liquidation.
The report further warned that the continued existence of the society posed a significant risk to farmers by weakening the structured coffee marketing system.
Presenting the findings to coffee farmers and other stakeholders during a meeting at the Murang’a County government offices, Principal Cooperative Officer Charles Mugwika said Marga had been buying coffee cherries in cash through agents stationed across Mathioya and Kangema sub-counties.
He said the practice is commonly associated with coffee hawking, which often exposes farmers to exploitation and undermines traceability within the value chain.
“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 also 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 Sh108,642,472; and Interim Secretary Margaret Wairimu Macharia, surcharged Sh989,540.
Investigators further flagged suspicious financial transactions involving former Kangunu Secretary Manager Peter Macharia Warahu, who admitted to 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 cherries remained in storage and no sales had been recorded to justify the transfers.
Additional concerns were raised over inconsistencies in the society’s formation process, with the report indicating that minutes used during registration were disowned by some individuals whose names appeared as attendees.
Mugwika said the county government had initiated action against officers involved in processing the registration documents.
“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. The officials raised concerns over coffee hawking and the destabilisation of the local coffee market.
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 to existing cooperatives and protect farmers from deceptive ventures.
In response, officials from Marga Farmers’ Cooperative Society dismissed the allegations, describing them as malicious and intended to sabotage what they termed a genuine farmers’ investment.
They said they would scrutinise the report and file a petition in court, maintaining that there were no irregularities in the establishment of the cooperative.
