The Kinyara Sugar factory is facing a crisis due to poachers of cane crops grown in the region by the rival sugar mills, out-grower farmers, and jaggery producers, said the firm, according to monitor.
As per the factory management, this is causing an annual loss of about Shs22 billion to the Kinyara Sugar factory.
Sam Rugambwa, deputy agricultural manager of the sugar mill said, “Sugar is being stolen by the private mills and jaggery producers from the cane fields belonging to the sugar mill and private growers.
Rugambwa alleges collusion among competing millers, jaggery producers, and factory insiders, primarily drivers. “These drivers are suspected of accepting bribes to divert loaded Kinyara sugarcane to unauthorized destinations, disrupting the factory’s cane supply chain,” he stated. He indicated that this organized effort has resulted in the loss of a significant 2,000 hectares of sugarcane since 2017, equivalent to an entire month’s milling, causing an estimated annual financial setback of approximately Sh22 billion.
“The shortage of sugarcane has not only impacted the factory’s sugar production but also its power generation capacity. Kinyara currently grapples with a scarcity of sugarcane, leading to a 50 percent reduction in its daily crushing capacity, which now stands at 5,000 to 6,000 metric tons, significantly lower than the factory’s potential of 10,000 metric tons,” he said.
In response to this issue, Aldon Walukanga, the communications chief of Kinyara Sugar Factory, underscores the crucial role of community vigilance.
Meanwhile, Walukanga disclosed that Kinyara Sugar Factory is determined to enhance transportation security by closely monitoring the vulnerable link in the supply chain and the transportation of sugarcane.
