Sony Sugar reports first profit in 14 years

KENYA – South Nyanza Sugar Company (Sony Sugar) has reported a pre-tax profit of Kes113 million in the first quarter of the 2024/2025 financial year, marking its first profit in 14 years.  

The miller attributed this milestone to improved cane supply, production efficiency, and a high cane conversion ratio. 

Speaking on the achievement, Managing Director Martine Dima expressed optimism about the company’s trajectory.  

“The last time this company made a profit was in 2010. We have made our first profit after 14 years,” Dima said. “The company is on the right trajectory, and we are moving towards reclaiming our lost glory.” 

Despite this positive development, Sony Sugar continues to face challenges, including farmer arrears, legal battles, and significant debt.  

The company currently owes farmers Kes130 million (US$1M) for cane deliveries from September to November.  

Dima explained that the arrears resulted from a shutdown in December 2024 for the maintenance of milling machines, which had not been serviced for over 20 months. 

Dima assured farmers that the company is committed to clearing their payments, starting with arrears for September, which will be settled within a week. He urged farmers to remain patient and continue supporting the company by supplying cane. 

Legal issues have also plagued Sony Sugar, with 3,500 cases pending in court when Dima took office last year. The company has since reduced these cases to about 1,000, a move that has helped mitigate potential costs exceeding Kes 2 billion (US$15.4M). 

Sony Chairman Jared Kopiyon acknowledged the financial struggles the company has endured over the last six years, emphasizing the importance of ongoing efforts to stabilize operations. 

Sony Sugar’s financial recovery comes after a government bailout of Kes 865 million (US$6.7M), which helped stabilize its operations. 

Meanwhile, the Kenya National Bureau of Statistics (KNBS) has revealed sugar imports dropped by 45 percent in the third quarter of 2024, falling from 162,189.1 tonnes in 2023 to 88,372 tonnes.  

This decline has positively impacted Kenya’s foreign exchange reserves, with the country’s expenditure on sugar imports reducing to Kes7.89 billion (US$60.9M) in 2024, down from Kes15.16 billion (US$117.1M) the previous year. 

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