Nzoia Sugar crushing below par, risks being closed over cane shortage

The Nzoia Sugar Company on September 3 /COURTESY
The Nzoia Sugar Company on September 3 /COURTESY

Nzoia Sugar factory is facing imminent closure following an acute shortage of cane occasioned by the drought situation in the country.

Acting managing director Michael Kulundu said the factory's cane supplies cannot sustain its operations amid high transport costs.

"We have never faced such a crisis before. We are forced to look for cane from as far as Busia," Kulundu told the Star on Wednesday.

He said the situation may take long to overcome since the factory's cane varieties take about 18 months and above to mature.

"Our current crop was adversely affected by the ravaging drought," he said, adding the Bungoma-based factory is a victim of cane poaching.

Cane poaching is a situation where one miller buys the raw material from designated zones of other factories, therefore crippling the latter's operations.

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Nzoia sources cane from its nucleus farm traversing 3,600 hectares while the rest is obtained from the 23,500-hectare outgrower zone.

The situation is said to be the same in Mumias Sugar Company and West Kenya Sugar which are milling below their optimum capacity.

However, Moses Owino - Mumias Sugar communication officer, said the factory will not close but has scaled down its operations.

"We are working with our suppliers who have mature cane. The situation is not as bad to warrant closure. All the same, Mumias is not milling to its maximum," Owino said.

Moses Wafula, a farmer, said the shortage in Nzoia is as a result of many farmers uprooting cane from their farms in protest over delayed payment.

"Most farmers are disillusioned and have opted to uproot the crop because of not only low payments but delays in remittances of the same," he said.

He said Nzoia Sugar needs to increase the payment per tonnage beyond the current Sh4,200.


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