Chemelil cane farmers to wait longer for their Sh210 million arrears

Farmer Elija Ogunde expresses his view during a sugarcane farmers' meeting at Chemelil Sugar. [Denish Ochieng/Standard]

Farmers who supplied sugarcane to a sugar company will have to wait for at least two months to be paid.

Muhoroni MP Onyango K’Oyoo yesterday told the farmers that Chemelil Sugar Company had not submitted their names to the National Treasury for payment of their arrears amounting to Sh210 million.

The message came as a shocker to the farmers because their counterparts who supplied five other factories had received their dues after the national government released Sh2 billion to bail out the struggling millers.

“As things stand, the truth is that a supplementary budget will have to be tabled in the National Assembly where that money will be approved before farmers can be paid,” said Mr K’Oyoo.

More than 500 farmers had convened in Chemelil town to discuss their engagement with the factory management after they stopped cane deliveries over unpaid arrears.

The farmers are also seeking Sh61 million for deliveries since January.

“We can only supply more cane if we are paid for the previous deliveries and we use part of the money to plant more cane. But if we don’t get any pay, we should be told where the money generated from our previous deliveries went,” said Joel Onyango, a farmer.

Chemelil Outgrowers Association chair Samuel Bonyo, who tabled a report from a sugar stakeholders’ meeting held in Kisumu last week, said an error by the Treasury had caused farmers to miss out on the bailout pay package.

“If Muhoroni factory copied our format in presenting the list of farmers and they got the cash, how would someone convince us that our format was the cause of us missing out?” asked Mr Bonyo, adding that Chemelil owed its farmers the least money.

President Uhuru Kenyatta last year pledged Sh2 billion to five public millers to be used to settle farmers’ debts.

The money was released early this year and the factories started paying their farmers, with Chemelil only realising two weeks ago that their share of the funds was missing.

Bonyo said Chemelil’s debt was not factored into the bailout because only Sh10 million remained after the other four millers had been paid.

K’Oyoo said the National Assembly would give the issue of the Chemelil bailout priority as they discussed other missing Government allocations, which had led to the stalling of several development projects.

Chemelil Director Atieno Atieno said the company was working on paying this year’s arrears.

“We admit there is a problem, and we understand why you are bitter. But I promise that before the end of this week, farmers will receive the Sh61 million before you begin bringing cane,” Ms Atieno said.