'Happy' farmers call for legalising, sustainability of sugarcane bonus

President William Ruto with sugarcane farmes during the launch of the issuance of bonuses in Mumias, Kakamega County on Jan 20, 2025. [PCS] A week ago, what started as hope after 15,000 farmers supplying sugarcane to Mumias Sugar Company were awarded a Sh150 million bonus payment, sparked debate for a week as questions mount about its genuineness, legitimacy, and sustainability. The Sunday Standard visited cane farmers in Kakamega, Bungoma, and Busia to ascertain the claims that have stirred excitement from farmers as a game changer in reviving the sector. While the first-ever bonus payout in the history of the sugarcane sector is perceived as a relief for struggling farmers, questions about its transparency, sustainability, and legal framework have left the excited cane farmers, stakeholders, and politicians with uncertainty about its long-term implications. On January 20, President William Ruto led government officials, farmers, and politicians in presiding over the issuing of the historic bonuses since the inception of the cane sector in 1922. Many farmers have acknowledged receiving the bonus payment through their various bank accounts. For the majority who received the bonus, the payments could revitalise optimism in the cane-growing belt zones historically dependent on sugarcane farming for livelihoods. We visited Henry Onzee, a cane farmer, at his home in Matungu Constituency in Kakamega County and a bonus beneficiary. The 62-year-old farmer growing cane on his 35-acre piece welcomed the move urging politicians to keep off the business to ensure sustainability of the bonus program. "I supplied cane to Mumias in 2024 and I thank the President for pushing for cane farmers to get the bonus. I think the move is going to motivate many farmers who had lost hope in the venture to start the venture again. I am appealing to politicians to stop politics because they are the same people who contributed to the fall of Mumias. What they should do is to allow the investors to work and ensure farmers get their bonuses yearly," said Onzee. Onzee sentiments were echoed by Douglas Makotsi from Mumias East, another beneficiary who received his bonus on January 20, 2025 Makotsi says he wants the Kenya Sugar Board and the Ministry of Agriculture to ensure the bonus has a legally binding framework. Makotsi wants politicians to help sensitize farmers who abandoned the venture to return to farming and ensure they benefit from the revival of the Mumias factory. "Let the Kenya Sugar Board, the Ministry of Agriculture, and the receiver manager ensure the bonus payment is legally binding so that, every year, we can get it as directed by the Head of State because we are willing to grow enough cane to improve our livelihoods and and attain sugar surplus," said Makotsi. Adanas Mangula from South Mateka, Bungoma County, who recently expanded his sugarcane farm from six acres to 10, believes that bonus payment is a sign of better things to come for a sector that has faced challenges for almost a decade. "This time, we know we will get paid on time, and that is why I plan to plant more than ten acres of sugarcane," Mr Mangula said. "The majority of farmers are happy. Only a few, including some politicians, are spoiling the industry through dirty politics," he added, urging sugar cartels and politicians to stay away. Similarly, Saida Kasamani, a sugarcane farmer since 2012, cites significant improvements under the new management of the miller, extension services, and access to agricultural inputs. Last week, she received a bonus for the cane supplied last year. "This bonus shows a promising future, and I believe more farmers will return to sugarcane farming," Kasamani said. However, farmers like Richard Barasa, who received what he considers a modest bonus for the 16 tonnes he supplied in August 2024, expressed concerns over the lack of clarity in calculating the bonus rates. "We are happy to receive the bonuses but were not informed about the rates or the criteria used. We hope all farmers were treated fairly," Barasa said. Despite the optimism, some stakeholders remain critical of the entire bonus payment from the company running the factory that has not posted its financial statements to show a profit-making trend. Simon Wesechere, Deputy Secretary of the Kenya Federation of Sugarcane Farmers, questioned the legality and sustainability of the bonus payments. "Our biggest worry is not the payment itself but lack of legal protection for the process. Without a framework, this could easily be discontinued in the future," Wesechere said. He pointed out that the Sugar Act 2024 does not include provisions for bonuses, calling for amendments to ensure the system's permanence. "If this is a genuine reform initiative, then all farmers across the country should benefit, not just those supplying Mumias," said Kennedy Asiachi, a supplier to the private company. On Tuesday, when The Standard crew visited Mumias Sugar premises, more new farmers could be seen registering after the revival of the sector and the bonus payout move. According to Stephen Kihumba, the Operations and Administration Manager at the miller, the factory has registered 27,633 farmers, and the process is ongoing. "We are receiving more farmers and registration is ongoing, from the 15,000 farmers who got bonuses we now have over 27,000 farmers," said Kihumba. When asked about the financial status of the company in the year 2024 that led to the bonus payout, Kihumba said the receiver manager, Kenya Sugar Board and Ministry of Agriculture are in the best position to explain. Kihumba said the company has planted 90 per cent of sugarcane in over 8,000 nuclear lands for a continuous supply of raw material to the company and seedlings for out-grower farmers. Kenya Sugar Board Acting Chief Executive Officer Jude Chesire, however, said the bonuses disbursed by Mumias Sugar Company were part of incentives paid to farmers depending on the amount of cane each farmer supplied in 2024. "The bonuses introduced by Mumias were to incentivize farmers to supply more cane. You supply more you get more pay and vice-versa," Chesire said. Mumias East MP Peter Salasya was among the first to question the source of the Sh150 million bonus during the launch of the issuance of the bonuses by President Ruto. He wondered, publicly, whether the money was from the exchequer or profit made by the miller and asked if the same could be extended to workers. Wiper Party leader Kalonzo Musyoka would thereafter question the source of the funds, alleging that it was a move to woo cane farmers. President Ruto, while on a weeklong tour in the Western region, told off Kalonzo for questioning the source of funds when coffee and tea farmers are getting bonuses from where they are supplying their products, adding that bonus payout will be rolled out to Nzoia, Muhoroni, Chemilili, Sony and Busia sugar companies. Ruto emphasized that the bonuses are part of broader reforms to revive Kenya's sugar sector, which includes writing off Sh117 billion in debts and settling outstanding payments to farmers and employees. The President directed the miller to allocate 30 per cent of its annual profits to bonus payments for sugarcane farmers. Mumias Sugar Factory is now processing 3,000 tonnes of cane daily. It recently installed a new crushing machine with the capacity to handle 6,000 tonnes, signalling progress towards full recovery.

'Happy' farmers call for legalising, sustainability of sugarcane bonus

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