Farmers in Mumias, Kakamega County, have given Mumias Sugar Company’s management a two-week warning to release the company’s financial condition report.
Addressing the press on Saturday, March 8, farmers and other sugar sector stakeholders expressed concern over purported inconsistencies in the company’s financial management.
While venting their displeasure, the farmers questioned how the corporation was unable to pay a multimillion-dollar loan owing to a local bank while producing ample cash from sugar sales.
“We do not know what this receiver manager took over, we do not know the value of the assets, including the value of tractors that he took over when he acquired the company,” noted a representative of the farmers.
“We do not know the amount he received after selling the sugar he found there and how he utilised the money, we have never been given any status report,” he added.
According to the disgruntled farmers, if the company fails to release its financial report within 14 days, they will launch a petition against the firm’s owners for alleged misappropriation of funds.
They also demanded that the corporate owners consult with farmers on crucial matters so that the corporation could make informed judgments.
“Out of all these farmers that you are seeing, we are going to demand that at every step of decision-making, we as farmers must be consulted,” said another representative.
The latest problem at Mumias Sugar comes barely two months after President William Ruto praised the company’s management.
The president noted that the sugar company changes had considerable results.
Ruto stated that the payment of Ksh1.7 billion in farmer arrears and Ksh650 million owing to employees was part of the attempt to revitalize the sugar industry.
On January 20, he spoke in Kakamega County at the introduction of the sugar bonus initiative. In accordance with other steps mentioned in the 2019 Sugar Taskforce, the Head of State announced that he has signed the Sugar Act 2024.
The Act establishes sugarcane catchment areas to improve milling operations.
“We have asked the Cabinet Secretary for Agriculture, Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector,” the Head of State noted.
“Last year, we produced a record 832,000 metric tonnes of sugar, and we anticipate that production will continue growing,” he added.
“By 2026, Kenya should be a surplus producer of sugar and begin exporting to the regional market.”
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