State pays Sh7bn arrears to cane farmers, staff
A tractor transports sugarcane from Konoin in Kericho County to Kibos Sugar Company.
What you need to know:
- The move comes as State readies to lease the public sugar mills for 20 years.
- Those owed money asked to furnish their bank details with respective firms for the payment.
The government has initiated the process of paying Sh6.94 billion, which is owed to farmers and staff by four public sugar factories ahead of their planned leasing.
The Ministry of Agriculture and Livestock Development on Friday told farmers and staff who have worked with or for Muhoroni Sugar Company, Nzoia Sugar Company, South Nyanza Sugar Company and Chemelil Sugar Company factories to hand in their bank details.
“This is to request the farmers and staff to urgently confirm their bank details with the management of the sugar factories in readiness for disbursement of the verified arrears,” said Agriculture Principal Secretary, Dr Kipronoh Ronoh.
This comes months after the National Assembly approved leasing of publicly owned sugar factories on condition that farmers who supplied sugarcane to them as well as factory workers are paid their dues.
Start of payment process comes after the Ministry this week put up the four sugar millers as well as Miwani Sugar for leases of 20 years.
Farmers and staff who supplied to or worked for Miwani Sugar –which shut operations in March 2001– will be excluded from the payments. “You are notified that the direction on Miwani Sugar Company will be provided once the pending court cases are determined,” said PS Ronoh.
Chemelil owes its staff and farmers Sh1.38 billion, Sony owes Sh2.05 billion, Nzoia owes Sh2.11 billion while Muhoroni owes Sh1.39 billion.
In total, the five public sugar mills have outstanding debts of Sh128.07 billion, according to revelations by Parliament, with the Cabinet approving the waiver of Sh117 billion.
The millers have been struggling under the weight of debts which have affected their ability to compete with well capitalized private factories.
The leasing process will see successful bidders take over control of factories, office buildings, machinery, equipment, nucleus farms, staff and guest houses, schools, sports stadia and service contractor yards owned by the millers.
