- Munya visited the firm on November 8 and announced that Sh500 million out of Sh1.5 billion earmarked for sugar companies would be allocated to Nzoia Sugar.
- Sh283,354,847 has been given to farmers and Sh216,645,154 will be for factory maintenance.
Farmers have started receiving Sh500 million released by the government to Nzoia Sugar Company.
In a press release, managing director Chrispine Omondi praised Agriculture CS Peter Munya for making it a reality.
"During this year's Mashujaa Day celebrations in Kirinyaga county, President Uhuru Kenyatta announced a stimulus package of Sh1.5 billion to assist state-owned sugar mills to pay farmer's arrears and carry out factory maintenance," he said.
"The Ministry of Agriculture, Livestock, Fisheries and Cooperatives dispatched auditors to review the farmers' payment records and a team of engineers to assess the factory requirements. This activity was completed and reports submitted to the ministry."
Omondi said Munya visited the firm on November 8 and announced that Sh500 million out of Sh1.5 billion earmarked for sugar companies would be allocated to Nzoia Sugar.
The money has now hit the farmers' accounts, he said.
Omondi said at the time of the CS's visit, the firm owed farmers Sh733,688,523 while the factory required Sh339 million for maintenance.
"The amount allocated to Nzoia Sugar Company was therefore appropriated in amounts of Sh283,354,847 for farmers and Sh216,645,154 for factory maintenance," he said.
The farmers have been paid for sugarcane delivered in March 2019, December 2020 and January to October 2021.
"Meanwhile, we would like to assure all our farmers that the company will put strategies to ensure that the remaining balance will be cleared as soon as possible," the MD said.
Munya said Sh200 million will go towards factory maintenance while Sh300 million will go towards farmers and workers payments.
Omondi said the company will close for maintenance in January. He said the factory has been in operation for five years without maintenance.
“The factory management has decided to close the company from January to give space for the engineers to do their work so that when we resume, the factory will work perfectly to avoid fire incidences that have occurred in the past,” he said.
Omondi said lack of maintenance has hurt production.
“At the moment the factory is milling 16 tones of sugarcane to produce one tonne of sugar; this means that we are operating at a loss that is why we have decided to up our game so that farmers are paid well,” he said.
The company can mill 10 tonnes of sugarcane to produce one tonne when operating at optimum level.
Farmers will now receive Sh4,112 for one tonne of sugarcane up from Sh3,833.
Edited by Josephine M. Mayuya