The government has approved Sh654 million to offset arrears owed to farmers and workers.
Agriculture PS Paul Rono said they have received the approved exchequer for the appropriated budget of Sh654 million in 2023-24 financial year to support sugar reforms.
Of the money, Sh354 million will be used to pay farmers arrears in Nzoia, Muhoroni, Chemelil and Sony millers.
Sh150 million will be used to offset a three months’ salary arrears for workers at Nzoia Sugar while the remaining Sh150 million to be shared by the remaining companies to pay one month salary to workers.
Nzoia Sugar Board chairperson Alfred Khang'ati said the money will help stabilise the company.
"We thank the President and all the local leaders who have really pushed for the revival of our company, we have already submitted farmers and workers bank details to AFA. They should receive their dues from Friday to Tuesday next week," he said.
Khang'ati said the Sh54 million will help Nzoia clear farmers’ debt leaving it debt free.
"The previous payments covered 80 per cent of the money we owed farmers," he said.
Currently, the company owes its workers 24 months’ pay amounting to Sh1.8 billion.
The factory, which is currently milling on a daily basis, uses its proceeds goes to pay farmers, maintain machines.
"We are only four weeks late in paying farmers who bring their sugarcane here and we are working hard to ensure we maintain this immediate payment to our sugarcane suppliers," Khang'ati said.
Agriculture and Food Authority is handling farmers' while workers' money will be handled by the stated sugar millers.
Despite efforts to stay afloat, Nzoia Sugar is still experiencing machine breakdowns, making the company to spend a lot in maintenance costs.
The company has partnered with Agricultural Development Cooperation and NYS to produce more sugarcane.
"For a very long time the nucleus land had been unutilised, we made efforts with the help of ADC and NYS and planted sugarcane that will soon be ready for crushing," Kng'ati said.
Managing director Ezron Kotut praised farmers for consistently supplying the factory with cane despite previous challenges.
"I am happy that we are now getting enough sugarcane supply that has improved our crushing capacity,"he said.
