Chemelil Sugar senior managers sent home

Chemelil Sugar Company

Chemelil Sugar Company Managing Director Charles Owelle and his top managers have been sent on compulsory leave after the factory operations were paralysed by a week-long strike by workers and cane farmers.

Agriculture Principal Secretary Richard Lesiyampe Friday made the announcement after a five-hour meeting with stakeholders at the company premises in Muhoroni, Kisumu County.

Mr Owelle, Head of Human Resources Jecinta Kipkering and Head of Procurement Robert Nyakundi have been suspended for two months to facilitate investigations over claims of poor management.

Head of Agriculture at Sony Sugar Company Gabriel Nyangweso will take charge of the Chemelil firm during this period, in which the PS will make drastic changes in the company's management structure to make it function effectively.

The company has been operating intermittently for the past decade, and it is said to have a debt of over Sh3 billion.

The PS ordered for a forensic audit in the company's financial management to determine the source of massive financial hitches that have hit the factory.

Lesiyampe said the action was taken after a wide consultation with stakeholders in a bid to rescue the sugarmiller from possible collapse.

"At this point we do not allude that those suspended are guilty. But because of the place of the company in our sugar industry, we would not wish to see it go down, but have a caretaker manager as we find out where the problem is," said the PS.

Before making the announcement, Lesiyampe held three meetings; with the Sugarcane Plantation Workers Union, the company management and the farmers representatives before addressing the workers who were camping at the factory's entrance.

The company has for the last few years faced revolt from farmers, who last week stopped their cane supply over delayed payments.

The factory has not been operational for the last two weeks due to lack of cane, a situation which led to over 800 employees downing their tools in what they said was to protect their jobs.

The employees called on the resignation of the managing director and a fresh agreement with the farmers.

Farmers' representative Atyang Atyang said the company owes them over Sh200 million, with some arrears dating back to 2014.