Nzoia Sugar pleads with farmers to collect Sh53m

Nzoia Sugar Company acting Managing Director Mr.Godfrey Wanyonyi addressing farmers and workers during the recent firm corporate day at the factory. PHOTO: TITUS OTEBA/STANDARD.

Further delays by farmers contracted to Nzoia Sugar Company to collect their payments could cost the miller millions of shillings.

The company could lose Sh8.5 million if farmers continue to drag their feet in collecting over Sh53 million in payment for March and April deliveries.

Payments for the two months have been lying idle in the bank, forcing the company to appeal to farmers to collect their money.

Godfrey Wanyonyi, the firm's managing director, said the company was in an awkward situation with regards to making further remittances for May.

Mr Wanyonyi feared the company could be forced to increase the amount in the bank by 16 per cent if President Uhuru Kenyatta signs into law the Value Added Tax (Amendment) Bill, 2016, recently passed by Parliament.

"Should that happen, we could be forced to part with an extra Sh8.5 million, which will impact negatively on the company's financial position," Wanyonyi noted.

Over 1,800 farmers are yet to collect their payments to date. Last week, MPs approved the Bill in a quest to exempt farmers from paying VAT on the transportation of sugarcane from farms to factories.