KENYA – Nzoia Sugar Company, a key player in the Kenyan sugar industry, has finally resumed operations after a 21-month closure caused by the lack of mature cane, bringing relief to over 67,000 sugarcane farmers initially supplying cane to the company.
During the reopening ceremony, Bungoma County Governor Kenneth Lusaka said, “I apologize that you had to go for 21 months without your source of income. It is not an easy thing considering the harsh economic times in the country. We hope that all will go well.”
Governor Lusaka emphasized the difficulties faced by the farmers during the harsh economic times and expressed hope for a smooth transition back to regular operations.
He urged all stakeholders involved in Nzoia Sugar Company to collaborate in order to stabilize the factory.
He also called upon politicians to set aside their differences and work together to find lasting solutions for the sugarcane farmers in the region.
Additionally, Lusaka shed light on why Nzoia Sugar was excluded from the leasing plan stating, “Among the parastatals that had been suggested to be leased was Nzoia Sugar Company but it was removed from the list after leaders and farmers piled pressure that it should not be leased.”
However, as the sugar factory resumes milling, employees have given the management a one-month ultimatum to clear their 21 months’ worth of pay.
Bernard Wanyonyi, the chairperson of the workers, accused the factory management of taking too long to settle the dues owed to them, affecting their ability to provide for their families, access quality healthcare, and pay rent.
Wanyonyi disclosed that despite reports of a payment plan, the company has yet to decide whom to prioritize as it faces debts to both farmers and employees.
The situation at Nzoia Sugar Company mirrors the challenges faced by Mumias Sugar Company, which also recently resumed operations after a closure from July 13 to November 30, 2023, due to insufficient mature cane.
Mumias Sugar’s promise to pay farmers promptly and the set price of Kes 6,050 per tonne of sugarcane are positive signs for the industry, but challenges persist.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
