Sessional Paper No. 08 of 2005 on To Provide Government Guarantee for Kshs. 2.0 Billion to Kenya Farmers Association Ltd. (KFA)

Abstract

Due to its historical background, activities and geographical network, KFA has been recognized by the GOK as one of the strategic "vehicles" to enhance the Government's efforts towards revitalization of Agriculture and Economic Recovery for Wealth and Employment creation. Thus the Government's policy decision to revive the KFA. Consequently, in Feb 2003, the GOK commissioned an inquiry team to look into the financial and operational affairs of KFA, that identified the extent of technical insolvency but recommended that the Association could be revived through GOK intervention. Pursuant to the Inquiry report by the Ministry of Co-operative Development (March/April 2003) which was subsequently presented to the delegates and adopted at the special delegates meeting on 26th of June, 2003. During this meeting, the Board & Senior Management of KFA were removed and an Interim Board & management appointed by GOK to oversee KFA's revival process.