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November 18, 2018

Nzoia Sugar closes over huge debt, shortage of cane

Nzoia sugar public relations manger Gilbert Awino speaking to the star on his office
 .PHTOS JOHN NALIANYA
Nzoia sugar public relations manger Gilbert Awino speaking to the star on his office .PHTOS JOHN NALIANYA

Nzoia Sugar Company is on the brink of collapse and has closed over lack of raw material and a Sh32 billion debt.

For three weeks the firm has not produced sugar because of an acute shortage of sugarcane.

Speaking to the Star in his office yesterday, public relations manager, Gilbert Awino (pictured), said, “We have closed because we don’t have cane both in our nucleus and outgrowers. We hope with time the situation will be better.”

The state-owned company was also awaiting a Sh300 million bailout promised by the state, so it can pay farmers.

In March total debt was reported to be Sh32 billion.

Staff who spoke to the Star on condition of anonymity said they have not been paid for two months. The company also has also not paid farmers for cane delivered for three months.

Farmers ask why they have not been paid, yet they had delivered cane and the company had sold sugar — which is now out of stock.

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