Chemelil Sugar to resume operations after striking deal with farmers

Trucks queueing to deliver sugarcane to Chemelil Sugar Company on October 3, 2021. [Peter Ochieng, Standard]

Troubled state-owned miller Chemelil Sugar company is set to resume operations after a three-week stalemate between the management and farmers who supply sugarcane was resolved.

Yesterday, the company announced that it is set to restart milling again after they came to an agreement with farmers in regard to the status of payments of amounts owed to farmers.

The company has promised farmers to make weekly payments for cane delivered, a major boost for farmers who stopped supplying cane as a result of the delays.

The company has been involved in a week's tussle with farmers making them stop providing cane for the company. They claimed the miller has been delaying in offsetting their payments.

On Saturday, in a press statement read on behalf of Interim Managing director Jackline Kotonya by Mr Joseph Kilu manager at the factory, the company management said they had already paid a Sh93.6million outstanding arrears to farmers, transporters and cane harvesters for three weeks of February 2023.

"Out of the total payment of 93.6 million we have equally made weekly payments of Sh7.5 million of cane arrears for the year 2022. We are also going to continue to pay and maintain weekly payments schedule 7.5million as farmers cane arrears for the year 2022," she noted.
The miller held a meeting with farmers and agreed to put their differences aside after management promised to pay for cane supplied on a weekly basis.

The farmers in a resolution after the meeting committed to starting supplying the cane immediately to the company but under tight conditions that the management must adhere to.

Tom Okal a representative of the farmers from one of the farming zones who read the resolutions of the meeting said, they had jointly agreed that farmers will start supplying cane and continue to support the company.

They, however, claimed that the supply of cane will also depend on a legal suit filed in court to determine whether they should continue supplying cane or not.

They also demanded to be respected by employees of the company and given proper service anytime they visit the factory.

"We have had our farmers disrespected by some employees of this company anytime they come to the company, this must immediately be addressed. Also among our resolutions is that there should be no politicking by employees and those found culpable of this should be sacked," said Okal.