By Allan Kisia
The country's second biggest producer of sugar, West Kenya Sugar Company, is on the verge of collapse due to acute shortage of cane.
The management at West Kenya, which is located in Shamberere, Kakamega North District, indicated that the factory could go under in two months.
The closure of West Kenya will be a big blow to the region, as another major economic investment in the region, Pan Paper Mills in Webuye, has remained under for years.
Already, 500 casual employees, 600 tractor drivers and loaders and 1, 200 outsourced personnel have been laid off.
On the farms, 3, 000 people who have been loading cane on tractors daily are now jobless.
Last week the factory shut down one mill due to cane shortage.
West Kenya accounts for 14 per cent of national sugarcane production. It comes second after Mumias Sugar Company, which accounts for 43 per cent. Nzoia Sugar Company produces 12 per cent, while Sony in Nyanza accounts for 10.5 per cent.
West Kenya Managing Director Tejveer S Rai said the mills had been crushing 2, 400 tonnes of cane per day in normal circumstances.
"The current cane shortage has seen us crush only 500 tons per day. It is getting lower by the day," he added.
He further noted that the mill had been paying farmers about Sh52 million per week, but is now paying Sh14 million in the same period. Rival Butali Sugar Mill admitted that it is also facing cane shortage. William Kopi, the chairman of Butali Outgrowers Company, said they have also been hit with an acute cane shortage and they are also crushing below capacity, running three days a week.
Speaking during a press conference in his office, Rai blamed the Kenya Sugar Board (KSB) for the shortage.
"We were told there was more than enough cane for even three millers. Where is that cane now ? Butali has been operational for only a few months," he said.
In a struggle to continue to survive, both factories are harvesting premature cane. Rai noted that they are harvesting cane of 14 months and below to keep the machines roaring. He said both millers and farmers incur losses when cane is harvested prematurely.
"The farmer will lose on tonnage while the miller will get cane with little sucrose content," he explained.
Rai further said he has lost over Sh25 million in the recent past resulting from diversion of his cane to rival Butali.