Blow to Govt as Court Suspends Payment System
The government introduced a new system in 2023 to enhance the transparency and efficiency of payments to some Kenyans...
✨ Key Highlights
The Kerugoya High Court has suspended the government's Direct Settlement System (DSS) for coffee farmer payments until May 20, 2026. This decision came after coffee farmers successfully argued that the system was implemented without proper public participation or parliamentary approval, affecting their ability to save.
- The DSS, introduced in August 2023, aimed to send direct payments to farmers via mobile phones after buyers paid into a central account.
- Judge Edward Muriithi ruled that public participation was violated in 15 coffee-growing counties and highlighted the lack of parliamentary approval.
- Felix Muriithi, National Coffee Cooperative Union chairperson, welcomed the ruling, calling it a "new dawn for coffee production."
- The government's system, spearheaded by Agriculture Cabinet Secretary Mutahi Kagwe, aimed to eliminate middlemen and cartels through an online platform.
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Courts Suspend Govt Payment System, Rule on Waititu's Bond, and Affirm Underpayment Lawsuits - November 2025
The Kerugoya High Court has suspended the government's Direct Settlement System (DSS) for coffee farmer payments until May 20, 2026, following a successful argument by farmers that the system was implemented without public participation. In another legal matter, Principal Magistrate Rose Ndombi ruled that former Kiambu Governor Ferdinand Waititu can secure his freedom by depositing a Ksh53 million bank guarantee. The Employment and Labour Relations Court in Kisumu affirmed in a landmark ruling that employees can sue their bosses for underpayment, establishing that paying below the statutory minimum wage is unlawful. Additionally, a city lawyer arrested in a nationwide counter-terrorism operation awaits a court ruling on November 19, 2025, regarding a DCI request for extended detention for further investigation into terror financing suspicions.
