President Uhuru Kenyatta has called for an audit of funds disbursed to Nzoia Sugar Company to pay farmers.
Speaking during a rally at the Bungoma Posta grounds at the weekend, President Kenyatta said it was unacceptable that farmers were still complaining about non-payment yet the Government had given Sh300 million to the miller.
He said the use of the funds needed to be investigated before the Government could pump more money into the company.
"We gave out Sh300 million to Nzoia Sugar Company to pay farmers but it is still worrying that farmers are complaining that they have not been paid. We need to know where this money went to before we can give out any more," he said.
Uhuru said those found culpable of misusing the money would be dealt with and assured area residents that the Jubilee administration was committed to ensuring that the sugar industry thrives.
The President was responding to Sirisia MP John Waluke's sentiments that the head of State should ensure that the plight of farmers was taken care of.
Mr Waluke said the miller was facing problems and farmers had not been paid for several months.
He said the factory was undergoing maintenance, which meant that farmers were not being paid.
"Mr President, our cane farmers are suffering. Nzoia Sugar is not milling and they are not paying our farmers. We ask you on behalf of the farmers to intervene and ensure they are paid," he said.
The President said internally displaced persons would be paid within a week.
He said the programme that started in Kisii would be extended to Bungoma and Busia counties.
"We know there are integrated IDPs in Bungoma County and we will ensure they are compensated like everyone else," he said.
He called on the Opposition to refrain from making the compensation issue a political campaign tool, saying some of the leaders had not done anything to help the displaced when they were in the Government.