THIKA COFFEE MILLS V. MIKIKI FARMERS CO-OP SOCIETY & COFFEE BOARD OF KENYA

JUDGMENT OF THE COURT

The 1^st respondent, Mikiki Farmers Co-op Society, is made up of 4,000 small scale farmers in Embu who cultivate coffee as a means of their livelihood. On 10^th December, 1997, the 1^st respondent entered into a written agreement ( the 1^st agreement) with the appellant whereby it was agreed that the 1^st respondent would deliver all its parchment and cherry mbuni coffee to the appellant for milling; the appellant would deliver the milled coffee to the 2^nd respondent, the Coffee Board of Kenya, for marketing. Under the 1^st agreement, the appellant would provide the 1^st respondent with financial guidance, loans, advances and farm inputs which would be secured against the coffee delivered and be paid against the proceeds of the said coffee.

Between December 1997 and March 1998, the 1^st respondent delivered a total of 4,242 bags of parchment and cherry mbuni coffee to the appellant for milling and onward transportation to the 2^nd respondent. Out of these, only 218 bags wer…