Kakamega county has set aside Sh100 million for cane development in the Mumias sugar belt and its environs to boost ongoing efforts of reviving the struggling miller.
Governor Wycliffe Oparanya said the money was factored in the 2020/2021 budget estimates that are before the county assembly.
Oparanga said the money will be put in a revolving fund and given out as loans to cane farmers to boost production.
"The county has finalised the setting up of the revolving fund. We have followed all the required rules and regulations," Oparanya said.
The initial attempts by the county government to establish a similar fund in 2014 failed after Sh200 million that was meant to pay farmers their arrears to motivate them in sugarcane farming ended up in the accounts of a private company.
The county disbursed the money without following procedures.
Mumias Sugar stopped cane crushing over 15 months ago due to huge debt and inadequate raw materials occasioned by poaching of its contracted cane farmers by rival millers in the Western region.
It is currently under receivership by the Kenya Commercial Bank group over a debt of close to Sh 12 billion.
In an effort to revive the miller, the government has waived off Sh11 billion tax arrears owed to the Kenya Revenue Authority (KRA).
The department of agriculture will be charged with the responsibility of identifying farmers to benefit from the programme before the disbursement of funds.
"The department is collecting statistics and other details of the farmers to guide them on implementation of the programme," Oparanya said.
The governor said the revival of the struggling Mumias sugar company was not possible without first ensuring availability of raw materials.
Oparanya said the funds will be used to plant cane in the Mumias sugar company nuclear farms that have now been turned into grazing grounds by residents.
Majority of farmers had quit cane farming because of failure by the miller to pay for their deliveries following financial challenges.
Oparanya said the county in partnership with the factory was reaching out to farmers to convince them to resume cane growing.
He asked farmers and leaders from the region to support the initiative to ensure that the factory has enough raw materials to enable it run smoothly once it starts sugar production.
He added that there are plans by the county to revive the Out-growers Company that collapsed due to corruption.
Oparanya said the company will help in the effective coordination of farmers' activities.
Edited by Frank Obonyo
