President Uhuru Kenyatta has been asked to expedite the release of Sh2.6 billion payment to sugarcane farmers.
The call came from Muhoroni MP Onyango Koyoo. During Mashujaa Day celebrations in Kakamega, Uhuru said the government will release the cash owed to the farmers in less than a month.
Two months have passed. The president also directed the Agriculture ministry to form a taskforce to look into the issues affecting the sugar sector and recommend solutions.
Koyoo yesterday asked the officials to obey the president’s directive.
“Presidential orders must be respected and the Cabinet Secretary must take responsibility,” Koyoo said.
The MP asked Uhuru to personally intervene so the Treasury can release the money. He said farmers were languishing in poverty.
Koyoo said Uhuru should give priority to state-owned industries to achieve the Big Four agenda.
“The President should take action and revive the ailing sugar sector. These factories are crucial to the country’s economy because they employ many people,” Koy said.
The lawmaker said the state owners sugar industries were suffering because of an influx of illegal imports. He attributed the collapse of most industries to corruption and embezzlement of funds.
“There have been dubious operations in the sugar sector. The state should speedily probe and those indicted be prosecuted,” he said.
Koyoo asked the government to bail out the debt-ridden millers and hire competent staff to revive them.
He claimed that some sugar barons were sabotaging the revival of collapsed industries because of vested interests.
Muhoroni Sugar Company owe farmers and transporters Sh474 million in arrears accrued from April to August 2017 and January to August 2018. Staff are owed more than 270million in salary arrears.
Most of the transporters are also farmers. Out of the Sh2.6 billion payout, Muhoroni Sugar Company is expected to receive Sh400 million.
The company’s receiver Francis Ooko said they are currently paying farmers upon cane delivery. He said the arrears were accrued between March and August 2018. Two months ago, Agriculture CS Mwangi Kiunjuri said the Sh2.6 billion payout will be used to settle debts owed to farmers.