Sugar firm clears Sh1b arrears owed to farmers

By KEPHER OTIENO

Sugarcane farmers in Nyando sugar belt have a reason to smile after Muhoroni Sugar Company settled their six-month arrears.

The firm paid growers Sh1 billion to clear arrears owed to them for deliveries, giving fresh hopes to several farmers whose hopes in the sector had dimmed.

Many farmers had diversified to other crops, but many now say they will be trooping back into the sugar-growing fold.

Muhoroni Sugar Company joint Managing Directors Martin Owiti and Kipngetich Bett said henceforth, farmers would be getting their payments promptly.

The joint receiver managers said the company had upped its daily sugar production following the revamping and proper maintenance of the miller’s machines.

Last year, the miller crushed a record 308,177 tonnes of cane in six months. A year earlier, the factory had crushed 302,864 tonnes a year.

"Our production capacity has now shot up from 1,800 tonnes daily to a steady 2,200," said Owiti.

"We have scaled up production, reduced wastage and improved revenue returns."

The increased production has also resulted in early harvesting of farmers’ crop, which inadvertently cuts wastage on the farm.

Owiti said the company had also embarked on elaborate plans to ensure payment to farmers per tonne is increased in tandem with the computation of the Kenya Sugar Board.

The board said cane farmers are supposed to be paid according to the market price of sugar.

Muhoroni Multipurpose Co-operative Chairman Atyang Atyang thanked the joint receiver managers for improving the miller’s performance ahead of privatisation.