• Manager accused of high-handedness when dealing with workers.
•He denies allegations, says workers statutory remittances paid.
Image: File
Cane farmers, workers and the business community in Kisumu have protested the sudden closure of Chemelil Sugar Company.
They accuse managing director Gabriel Nyangweso of failing to follow the due process of notifying the authorities before making the drastic move.
Nyangweso has, however, denied the claims, saying the factory was still milling and management has followed the due process ahead of the planned closure.
Sources at the factory intimated to the Star that the Chemelil boss shut down the miller without informing Agriculture Cabinet Secretary Peter Munya and the Agriculture, Fisheries and Food Authority Sugar Directorate.
The closure, they said, was preceded by months of disagreements between trade union leaders at the factory with the manager over the running of the firm.
The sources further said workers have not been paid for over three years and farmers as well as transporters are owed about Sh300 million.
They also intimated that the company has not remitted statutory deductions such as NHIF and NSSF contributions.
A number of workers are reportedly home following the closure amid claims farmers were informed the factory was being closed for maintenance.
In the ensuing circumstances, a number of farmers attached to the factory have been taking their cane to other sugar factories.
“The closure is uncalled for because the factory has been grinding cane without problems,” a source at the factory said, decrying the suffering of the affected workers.
There are also claims workers were not paid during the said closure, while most farmers were last paid in December last year.
The concerned parties want the government to sack the manager, reopen the factory and establish a regular maintenance roster to avert disruptions.
But when contacted by the Star for comment, Nyangweso dismissed the claims.
“There is a process of closing [the factory] which we are following. The factory is still running. At the moment, we are making sugar though not receiving cane after farmers felt they were offended. After clearing what we have, we will close officially,” he said.
Nyangweso further said the management had remitted statutory deductions to the recipient agencies.
“The plan for maintenance has been on for a very long time. The government is financing it. Stakeholders have been informed of the planned closure. We have held meetings with farmers, staff, transporters and cane cutters,” he added.
On workers, he said the different cadres were affected differently and no one was sacked. He said those who may be at home are among persons whose contracts ended but are yet to be renewed.
Nyangweso said he got the factory on its knees and has worked to the point it can now mill cane.
“This factory was down completely. If anyone is accusing us of killing it, then we wonder what reviving it would look like.”
On the planned maintenance, he said, “We had to strike a balance between closing and continuing to make losses. We thus decided we better maintain than make losses.”
The MD urged those with issues about the running of the factory to come up with something that will be useful to help them engage in a discussion.
“People have their own perception to issues. If anyone has issues with the operations of the company, let them address the same to me and we will handle amicably,” Nyagweso said.
-Edited by SKanyara