Debt-ridden sugar mills to be closed in 6 months

Agriculture and Irrigation CS Mwangi Kiunjuri during a briefing at the ministry on March 23, 2018. /LUCY KARANJA
Agriculture and Irrigation CS Mwangi Kiunjuri during a briefing at the ministry on March 23, 2018. /LUCY KARANJA

State-owned sugar mills that will be unable to sustain themselves in the next six months will be closed, Agriculture CS Mwangi Kiunjuri has said.

Speaking on Tuesday when he toured Nzoia Sugar Company in Bungoma, Kiunjuri said the mills have been unable to revive themselves despite numerous bailouts by the government.

The said poor management was to blame.

“Enough is enough. We cannot have companies crushing and selling cane but always crying for help from the government," Kiunjuri said.

The CS said the state has no option but close firms which are making loses.

"If you open a shop, stock it then it goes down and you restock it twice and it still goes down, you are left with no option but to close it down," Kiunjuri said.

Kiunjuri said the government will give a final bailout to all sugar mills but with strict supervision.

“We are going to pay farmers directly. This will be a test for mangers who will want to cook the lists,” the CS said.

He said auditors had been dispatched to scrutinise the accounts of Nzoia Sugar Company among other sugar factories.

The CS said the government will not pay ghost workers or suppliers.

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