Kenya's first private sugar processing factory is to be built in Nandi and is expected to reduce perennial losses by farmers.
Construction of the Sh3.8 billion cane factory is to begin in October in Nandi is expected to reduce perennial loses by farmers.
The factory will be built at Kimwani area in Tinderet sub-county.
The chairman of the group of investors Brig (retired) Peter Magut informed Nandi county economic forum that they had already obtained the required authorities from both the county and national government.
Magut said the shareholders had received funding towards the construction and that the contractor was already on the 100-acre site preparing the ground.
“With the dwindling fortunes of Chemelil, Miwani and Muhoroni sugar companies, farmers are facing a lot of challenges in selling their produce hence the decision to engage the private sector,” Magut said.
The three state-owned sugar companies have been facing serious financial challenges due to mismanagement by government appointees.
Efforts by the Privatization Authority of Kenya to have them sold to investors for revival have faced resistance from cane farmers and other stakeholders who want the government to involve them in their planned sale.
This has left cane farmers at the mercy of private firms who buy farm produce at throwaway prices.
The existing private firms include Kibos, West Kenya and Butali sugar companies that have established weigh bridges in parts of Kisumu, Nandi and Kericho counties to purchase harvested cane.
Magut said the new state-of-the-art sugar cane processing plant will have daily crushing capacity of 2,500 tons.
The new sugar firm will start operations in the first quarter of 2023 and is expected to generate 3,000 direct job opportunities to both skilled and unskilled labour.
“We are targeting to enlist upto 25,000 cane farmers whom we shall have farming contracts with so that they have a guaranteed market for their farm produce,” Magut told the forum.
The new consortium targets to produce molasses, ethanol and generate electricity using cane byproducts.
Farmers in Kisumu, Nandi and Kericho counties will now have an alternative market for their cane.
Delayed cane harvesting resulting to over ripping and lose of weight while still in the fields is a major problem to the farmers.
Inflated transport cost by the companies following to the collapse of state-owned firms has frustrated farmers.
(Edited by V. Graham)
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