Farmers ask State to save Chemelil from collapse

Sugarcane farmers want the Government to save Chemelil Sugar Company from a possible collapse.

The farmers have also appealed to the government to fast-track payment of arrears for cane delivered to the miller. The company gets its sugarcane from farmers who live in Kisumu and Nandi counties.

In a memorandum to Agriculture Cabinet Secretary Willy Bett, the Kenya National Federation of Sugarcane Farmers (KNFSF) cites systemic problems which could ground the miller. The farmers say they have not been paid for six months. The federation is worried that losses and increased indebtedness are a recipe to drive the company into receivership.

"We are sadly aware that both Muhoroni and Miwani Sugar factories have failed to get out of receivership for over 20 years. Miwani collapsed in the process. We don't want the same to happen to Chemelil," the farmers said in their memorandum.

KNFSF also wants the board of Chemelil to be reconstituted. Charles Owele was appointed in acting capacity on September 11, 2011 and confirmed on May 11, 2012 as the CEO of Chemelil Sugar.

The federation noted that Chemelil Sugar has benefited from a Government bailout for farmers' arrears and factory maintenance to the tune of Sh1.8 billion from the Sugar Development Levy.