By Robert Wanyonyi

First it was the milk glut then a bumper maize harvest and it seems sugar is joining the bandwagon.

A consignment of sugar worth Sh400 million at Nzoia Sugar Company remains unsold despite a market flooded with imports.

The company is in a dilemma with 120,000 bags of 90kg unsold sugar in its stores after local businessmen opted for cheap imports from Uganda, Swaziland and Comesa countries.

Nzoia Sugar Company Managing Director Saul Wasilwa says they have been forced to construct an extra store to handle the excess sugar.

"Although we are still on schedule in paying farmers, our swift payment programme may be disrupted if the Government does not intervene urgently," Mr Wasilwa said yesterday.

Appeal to MPs

He said with cane poaching, sugar factories face a bleak future if Parliament does not come up with proper legislation to protect the sector.

"While we are still stocking thousands of bags of unsold sugar, some cartels are buying cane from our contracted farmers hence jeopardising our operations.

"I appeal to the Provincial Administration to help us tackle this problem," he said.

The company’s Marketing Manager Clifford Mabele, who took The Standard round the stores, however, said the company can still make a little profit, but it may not last.

He said while Nzoia sells a 90kg bag at Sh3,800, the same quantity of the imported sugar is going at between Sh3,400 and Sh3,500 thereby making it impossible for local companies to penetrate the market.

"While there appears to be a shortage on the world market, we seem not to be moving our sugar to our traditional markets due to the complicated nature of the competition in the country. We feel the Government has to do something before the situation deteriorates," said Mabele.

He warned if urgent measures are not taken the sugar in their stores could start going to waste.