Sugar millers closures hit Muhoroni, Kisumu business hard

The collapse of once vibrant sugar companies in Muhoroni, Kisumu county has massively affected local business, a Chamber of Commerce official has said.

The Kenya National Chamber of Commerce and Industry director Felix Minda said the collapse of the three state-owned industries has made life miserable for locals.

Miwani, Chemelil and Muhoroni sugar companies were the main drivers of Muhoroni constituency's economy but are no longer productive.

Miwani, under receivership since 2000 and Chemelil are not operational.

Chemelil managing director Gabriel Nyangweso recently said they need Sh258.7 million to resume operations.

Chemelil stopped operations on March 11 after farmers refused to supply cane over accumulated arrears.

The machines are also obsolete which either require replacement or thorough maintenance.

Workers at Chemelil have gone 17 months without salaries and are owed Sh844 million.

Muhoroni which operates at a sub-optimal level owes workers Sh312 million. It faces cane shortage and financial constraints.

In the early 1990s, businesses thrived in the towns hosting the millers but little activity is found in any of them currently.

Minda said the circulation of money is too low in the towns as those with loans are unable to pay.

“The economy of Muhoroni is completely run down. Workers, farmers and businesspeople hardly make ends meet,” he told the Star on Thursday.

The chamber has appealed to the government to act swiftly and invest more in the industries to revive them.

“This will greatly improve the lives and businesses in Muhoroni,” Minda said.

He called on the government to hasten the privatisation process of the public sugar industries which has lagged for 18 years due to lack of political goodwill.

“If privatisation cannot be realised then an executive order should be issued to reinstate the original owners of these companies. Muhoroni was managed by Mettah Group while Chemelil was under Booker Tette International,” Minda said.

He also asked the government to create an economic stimulus fund to support the affected local economy in cane growing zones.

Minda said pending privatisation, the government should allocate Sh1 billion for cane development in Chemelil and Muhoroni millers.

The government, he said, should further reconstruct all the 560km sugar belt roads as a way of creating investment in cane areas to boost the local economy.

(edited by O. Owino)