Kisumu Governor Anyang Nyong’o wants Muhoroni Sugar Company’s joint receiver managers removed over alleged mismanagement.
He blamed managers Asa Okoth and Fredrick Kebeney for closing the company abruptly without extensive consultation with stakeholders.
The factory, currently under receivership, is headed by general manager Nashon Osieko.
Muhoroni, a state-owned sugar miller, was shut down for six weeks on May 21 over what the management said was shortage of cane to crush.
The shortage is largely attributed to cane poaching by private millers. State-owned firms say there are no regulations to deal with errant millers.
Nyong’o alleged the managers closed down the mill without undertaking proper engagement with him and other stakeholders in the industry.
He said the management should have consulted widely before closing the factory.
Nyong’o spoke on Friday during a meeting between farmers’ representatives and the receiver managers.
The closure came days after the Kenya Revenue Authority demanded Sh861 million in tax arrears.
Kebeney and Okoth distanced themselves from the allegations.
They said lack of cane and huge debts have hampered smooth operations, making them unable to pay farmers and suppliers.
Nyong’o said a permanent solution should be found for the debts and non-payment of salaries, farmers and suppliers.
Currently, the company is selling sugarcane from its cane-growing area to private millers as it waits for a long-term solution.
Nyong’o said the government should write off debts and pump in enough money to revive the miller.
On cane poaching, the governor proposed reintroduction of the zoning of the sugar cane growing areas as well as introduction of sugar development levies in the industry.
Nyong’o also asked farmers and the management to come up with a proposal for state intervention.