Sugarcane farmers call for audit of state owned millers

Sugarcane farmers have now called on the newly constituted boards of state-owned mills to launch urgent investigations into the management of the firms in the last three years.

They raised concerns that the disbandment of Sony, Chemelil and Nzoia sugar company boards since July 16, 2020 has led to running down of the firms as the managing directors operated without no one to account to.

Kenya Association of Sugarcane and Allied Products (Kasap) chairman Charles Atiang’ called on the chairmen and the board members appointed by President William Ruto’s administration last week to embark on stocktaking and safeguard the public assets from pilferage.

“Lack of board members led to the managements of the three sugar factories to resort to making unilateral decisions which could be detrimental to the survival of the companies,” he said.

Mr Atiang’ further pointed out that the vacuum led to a number of top managers to remain in acting positions and hindered them from making critical decisions for the day-to-day management of the institutions.

Kenya Sugarcane Growers Association (KESGA) General Secretary Richard Ogendo also underlined the need to investigate any form of financial impropriety within the public entities to maintain the lifeline of thousands of people who depend on the cash crop.

He further called on the government to fast track the privatisation of the sugar mills to resuscitate the once lucrative sector.

President William Ruto last week appointed politician Alfred Khang’ati to chair the board of Nzoia Sugar Company, former Awendo MP Jared Opiyo to chair Sony Sugar and John Nyambok for Chemelil Sugar Company for a period of three years.

On the other hand, Agriculture Cabinet Secretary Mithika Linturi appointed members of the boards for the three debt-ridden companies whose performance have been dwindling over the years.

Former Agriculture CS Peter Munya while dissolving the boards of Sony, Chemelil and Nzoia sugar companies indicated that the move was aimed at giving room for the leasing process and handing over of the management to private entities.

In its place, he appointed an interim management committee chaired by former Agriculture CAS Ann Nyaga and eight other members who were supposed to serve until all the five sugar mills are handed over to successful bidders.

While revoking the appointment of the board members, the government called for bids from interested investors to run the factories for 25 years and return them to profitability as well as pay accrued debts owed to cane farmers and lenders.

Successful financiers were expected to lease, redevelop and operate the sugar complexes at sufficient processing capacities to support diversification into cogeneration of export power, production of bioethanol and allied co-products.

The Ministry received bids from 29 companies, among them, two firms linked to tycoon Jaswant Rai, China CAMC Engineering Company Limited, Shenzhen Start Instruments, Mehta Group, Kibos Sugar, Butali Sugar Mills, Mini Bakeries and Kuguru Food Complex.