The government has suspended the license of Eagle Crown Coffee limited for delaying payments from auction.
Agriculture and Food Authority (AFA) acting Director General Kello Harsama in a statement signed by the Agriculture Cabinet Secretary Peter Munya on Thursday said the company has not remitted the sales proceeds to the new Kenya Planters Cooperative Union to pay the same money to farmers after the recommended deductions.
This is according to a sale agreement dated March 16, 2021.
“Under the first schedule under the coffee buyer, under the crops general regulations of 2019, a coffee buyer shall operate under obligations one being remittance of coffee sale proceeds to the direct settlement system electronically or by a banker’s cheque within 5 working days from the date of sale,” this is according to AFA.
“One is also liable for suspension from trading in case of default of payment of coffee proceeds through the direct settlement system within the prompt date.”
CS Munya said the government is serious in cracking the whip against companies delaying farmers’ money.
