This archive report was first published on 1 September 2019.
As of April 1, 2019, sugarcane farmers in Migori County were on strike, demanding over Sh100 million in salary arrears from Sony Sugar company.
The company's crushing machine has been frequently breaking down, with the miller's installed production capacity of 3,000 tonnes of cane in the 1970s now reduced to a mere 200 tonnes a day.
According to Sony Sugar's Board Chairman, Mr. Owino Likowa, the company's woes are due to lack of annual maintenance in the last five years, high cost of cane production, and inefficient technology.
Despite having a vast area of land under sugarcane cultivation, Sony Sugar's current yield per hectare is extremely low compared to other sugar millers, resulting in low overall production and short supply of sugarcane raw material to the mill.
Mr. Likowa admits that the company's low production is due to the lack of annual maintenance, which has not been done for the last five years, with the last maintenance done in 2014.
Additionally, the factory is still operating a steel mill, while new competitors like Sukari Industries run an electric mill, making them more efficient.
Mr. Likowa notes that most of the machinery used in Sony Sugar's crushing mill is over 30 years old and needs rehabilitation.
Bank loans and county government funding are being sought to do maintenance, but the State, which holds 98% stake in Sony, has yet to provide funds for annual maintenance.
According to the firm's management accountant, Edward Odhiambo, the company is sourcing for money from banks and the county government to do maintenance, but the factory's frequent breakdowns have resulted in massive losses.
Mr. Odhiambo says that the company loses 6 tonnes of sugar during fermentation and extraction as it ends up producing more molasses than sucrose.
At the moment, the firm pays farmers Sh4,300 per tonne, but if the factory operates at its maximum, it can do up to 3,500 tonnes of cane and make Sh15,085,000 per day and about Sh452,550,000 million a month.
Mr. Likowa says that if the factory is given about Sh400 million it needs for annual maintenance, they will be back on a strong financial footing.
