Over 14,000 cane farmers associated with Transmara Sugar Company warned of withholding raw material supplies following a 5% reduction in cane prices, risking mill operations in March 2019. The company announced February-March payments would drop to Sh3,910 per tonne from Sh4,110, citing financial sustainability concerns.
Transmara CEO Frederick North-Coombes stated the company could not absorb losses amid volatile market conditions. Farmers countered that rising input costs, transport fees, and gate charges remained unchanged, demanding price reductions only if operational expenses were also cut.
At a March 5 meeting with management, farmer representative Davis Dikirr asserted, "We will only accept lower prices if the company reduces farm input, transport, and cane cutting expenses." Stephen Narupa of the Kenya National Federation of Sugarcane Farmers criticized the unilateral decision, emphasizing the need for collaborative negotiations.
The mill, with a daily crushing capacity of 4,500 tonnes, faces potential shutdown if farmers follow through on their threat. A March 14 resumption of talks was mandated by local MP Gideon Konchella. North-Coombes warned of possible transport cost increases and blamed illegal imports for market instability, urging stricter enforcement against sugar cartels.
