Nairobi, June 26 -- Thika Coffee Mills has lost its bid to recover more than $253,000 (Sh32.6 million) from a farmers' cooperative society after the High Court found that its lending model trapped growers in a cycle of debt through a loan arrangement the judge declared harsh, unconscionable and oppressive.

At the same time, Buchana Coffee Growers Cooperative Society lost its counterclaim for $45,212 (Sh5 million) against the miller after failing to prove the losses and damages it sought.

The court ruled that the coffee miller had already recovered substantially all the money it had advanced to the cooperative and could not continue pursuing additional payments.

The dispute arose from a crop advance agreement signed in June 2014 after t...