Muhoroni Sugar Factory is on the verge of collapse due to corruption and incompetent management, former Kisumu mayor Sam Okello has said.

Yesterday he said workers have not been paid for two months. It is not clear how much the workers are owed.

Okello said farmers are yet to receive payment for cane delivered for over five months. Farmers are owed more than Sh300 million.

The government-owned company is in receivership. “The receiver managers are not doing any good. They are junior officers from the Agriculture ministry, therefore, they cannot go up there and canvass anything for the farmers,” he said. The former mayor said the factory is currently harvesting immature cane at eight months, instead of 18 months as required.

Okello said harvesting immature canes indicates lack of adequate raw materials, because the factory lacks funds for cane development.