This archive report was first published on 30 July 2020.
As the sugar industry in Kenya continues to face challenges, private sugar factories have emerged as the top performers, leaving their state-owned counterparts in the dust.
According to industry insiders, private sugar factories have been able to sustain operations despite the scarcity of raw materials, thanks to their efficient management, strong financial muscle, and modern machinery.
Out of the 14 licensed sugar factories in the country, eight are privately owned and operate in Western Kenya, Nyando, South Nyanza, and Coast sugar belts.
The private sugar factories include Kibos, West Kenya, Sukari, Olepito, Busia Butali, Transmara, and Kwale, which have managed to maintain their operations despite the challenges facing the industry.
One of the privately owned sugar factories, Kibos Sugar and Allied Industries Ltd, has a capacity to mill 3,500 TCD and boasts of 5,000 acres of nucleus farms under cane. The factory has also contracted farmers who own more than 100,000 acres to sustain its capacity.
According to the managing director of Kibos Sugar and Allied Industries Ltd, Bhire Chatthe, the factory's machines are maintained annually by experts from the equipment supplier to ensure optimum performance.
However, not all private sugar factories have been able to maintain their operations without controversy. Some have been accused of not investing in cane development and instead taking advantage of the difficulties facing state-owned millers to sustain their operations.
For example, in Busia County, farmers have complained about sugar millers crossing into neighboring Uganda in search of raw materials at cheaper prices while abandoning local growers.
The government has since banned the importation of cane, which has jolted operations at Busia Sugar Company, forcing it to scale down production.
Mr. Mohammed Omar Bajaber, the administrator of the miller, explained that the cane the miller had developed was destroyed in the farms when the factory was facing uncertainty over its operations due to court cases.
Mr. Ibrahim Juma, the national chairman of the Kenya National Federation of Sugarcane Farmers (KNFSF), has called on the sugar millers to give priority to local farmers to cushion them from making losses.
"We have no problem with sugar millers crossing into Uganda to source for raw material as long as they ensure cane belonging to our farmers is harvested and they are paid within seven days," said Mr. Juma.
