As sugar factories in the Western region resume milling, employees at Nzoia sugar company in Bungoma have given the firm's management a one-month ultimatum to clear their 21 months’ pay.
Sugar firms took a 4-month break from July 24, 2023, following a directive by the Agricultural Food Authority (AFA) to millers in the Western and Nyanza regions to cease milling operations to allow sugarcane to mature.
The ailing firm has been a major source of livelihood for more than 67,000 cane farmers and residents in the region.
Addressing the press on Saturday at the company premises during the re-opening of the factory to milling, Bernard Wanyonyi, chairperson of the workers, blamed the factory management for taking too long to clear farmers’ dues.
Furthermore, Wanyonyi revealed that most of the employees aren’t able to take their children to school, access quality healthcare, provide food for their families and pay rent due to delayed payment.
“I have heard reports that Nzoia has a plan to pay the employees but it has not decided whom to start with because the firm has debts for both the farmers and employees,” he said.
In his address, during the reopening of the sugar factory, Governor Kenneth Lusaka empathized with the factory workers over the hardship occasioned by a halt in operations at the milling plant.
"It is quite disheartening that our farmers who are the key ingredient to this factory, are subjected to deplorable conditions because of lack of salaries,” Lusaka said.
The governor called for collaborative efforts in the quest to stabilise the factory, urging the political class to desist from politicking on matters of Nzoia Sugar.
"Nzoia is the pride of our county. It's the engine of our economy and a source of livelihood for many. Let us shun away from political comedy and establish a lasting solution to problems facing our cane farmers,” he said.
"As the factory resumes milling, I request that farmers build our production capacity for stability."
At the same time, Lusaka revealed why Nzoia Sugar was excluded from the leasing plan.
“Among the parastatals that had been suggested to be leased was Nzoia Sugar Company but it was removed from the list after leaders and farmers piled pressure that it should not be leased,” Lusaka stated.
Kanduyi MP John Makali who was also present at the function affirmed that Western leaders have held many meetings with the head of state to discuss how Nzoia will get on track.
“Since we formed this government we have had many meetings over Nzoia Sugar revival but the biggest question is where does the money go after selling sugar?” he asked.
Makali also attributed the collapse of the sugar mill to massive corruption.
Nzoia Sugar Company Board chairman, Alfred Khang’ati affirmed that all the farmers' and employees' dues will be cleared.
“We submitted our payrolls at the Nairobi office and they promised us that they are going to pay the employees before Christmas, I hope it is going to happen,” Khang’ati said.
The board chairman also stated that the company will pay farmers Sh6,050 per tonne.
Khang’ati also announced that the factory management is in negotiations with various banks to forge a deal that will see contracted cane farmers get advanced loans using their mature sugarcane crops as collateral.
The former Kanduyi MP also pointed out that the deal will also cushion farmers during hard economic times.
“This deal seeks to ensure that our farmers are cushioned and maintain constant cash flow that will aid them to maximise cane production and supply,” Khang’ati noted.
Khang’ati said that the company spent more than Sh15 million during factory maintenance lauding the government for writing off debts worth Sh54 million.