Nairobi : The Kenyan government has allocated 654 million shillings to settle outstanding payments owed to farmers and sugar industry workers, according to The Star. According to Agriculture Principal Secretary Paul Rono, the budget, approved for the 2023-24 financial year, supports reforms in the sugar sector.
Sh354 million will be allocated to pay farmers’ arrears in Nzoia, Muhoroni, Chemelil, and Sony millers. Sh150 million will be used to clear three months’ salary arrears for workers at Nzoia Sugar, while the remaining Sh150 million will be distributed among the other companies to cover one month’s salary for their workers. Nzoia Sugar Board chairperson Alfred Khang’ati stated that the funds will help stabilize the company.
“We express our gratitude to the President and all local leaders who have diligently pushed for the revival of our company. We have already submitted the bank details of farmers and workers to AFA. They should receive their payments from Friday to Tuesday next week,” he said. Khang’ati added that the Sh54 million will enable Nzoia to clear farmers’ debt, making it debt-free. “We are only four weeks behind in paying farmers who deliver their sugarcane to us, and we are working hard to ensure we maintain this prompt payment to our sugarcane suppliers,” Khang’ati said.
The Agriculture and Food Authority is handling the farmers’ payments, while workers’ payments will be managed by the respective sugar millers. Despite efforts to stay afloat, Nzoia Sugar continues to face machine breakdowns, leading to high maintenance costs. The company has partnered with the Agricultural Development Corporation (ADC) and the National Youth Service (NYS) to produce more sugarcane.
“For a long time, the nucleus land had been unused. With the help of ADC and NYS, we planted sugarcane that will soon be ready for crushing,” Khang’ati said. Managing director Ezron Kotut commended the farmers for consistently supplying the factory with cane despite previous challenges. “I am pleased that we are now receiving enough sugarcane supply, which has improved our crushing capacity,” he said.
