Nzoia Sugar is back to normalcy after two months maintenance, managing director Chrispine Ogutu has said.
Ogutu on Tuesday said before the maintenance the firm was experiencing problems and making huge losses.
He said they used to grind 15 tonnes of sugar cane to produce one tonne of sugar, which was very expensive and not profitable.
Ogutu said the miller will now be able to grind 11-12 tonnes of sugar cane to produce one tonne of sugar.
“Very soon Nzoia Sugar will be available on supermarket shelves,” he said.
Ogutu urged residents to disregard media reports claiming that Nzoia Sugar is still on its knees and that farmers have not been paid their dues.
“I have called this media briefing to clear the air that Nzoia is alive after two months of maintenance. This time around we are going to make profits so that farmers bringing in their sugar cane are paid their dues on time,” he said.
Ogutu said the company had in November 2021 received support from the government amounting to Sh500 million to undertake maintenance at Sh217 million and pay farmers’ arrears amounting to Sh283 million.
“The money we received from the government through the Ministry of Agriculture was used for the intended purpose,” the MD said.
Ogutu said the cash paid to farmers on December 1, 2021 catered to 38.6 per cent of the total arrears of Sh733 million owed to farmers. This left a balance of 61.4 per cent equivalent to Sh450 million.
He also lauded outgoing President Uhuru Kenyatta for visiting the sugar firm on August 2, 2022 where he announced another Sh500 million bailout to offset arrears owed to farmers and workers.
Uhuru directed Agriculture CS Peter Munya to ensure Sh450 million owed to farmers is credited to their bank accounts while Sh50 million is paid to factory workers.
Ogutu said immediately the President ordered the payment, the Agriculture Food Authority credited the payment to the farmers’ accounts.
He said others were paid on August 8, completing the payment to 14,000 farmers.
Ogutu said the pledge by the government to pay Sh733 million owed was fulfilled.
He urged farmers to continue bringing in sugar cane for milling as the factory needs raw materials.
Farmers led by Boniface Wanyonyi lauded Uhuru for bailing out the firm.
Wanyonyi urged the company management to be paying farmers once they have delivered sugar cane to the company.
Edited by A.N
“WATCH: The latest videos from the Star”
