This archive report was first published on 27 December 2019.
On December 27, 2019, Nzoia Sugar Company released Sh153 million to farmers as part of a Sh579 million debt owed to them.
The company aims to appease farmers ahead of plans to revive its operations next year.
According to Michael Makokha, the company's managing director, the payment is timely and will help contain the cane poaching menace that had become rife due to delayed payment concerns.
Mr Makokha disclosed that the government had paid Sh426 million to 12,292 farmers in March, and a second batch of 4,977 farmers are still waiting for their dues.
The company has put in place strategies to clear the remaining Sh175 million owed to farmers who supplied cane between November 2018 and April 2019 as soon as the factory operations resume.
Mr Makokha assured farmers of prompt payment, stating that the ongoing factory repairs are at advanced stages and crushing will start soon.
However, most sugar cane companies in Western Kenya have reduced their crushing capacities to cushion against losses, subjecting farmers to delayed harvesting of mature cane and high production costs.
Farmer Moses Baraza from the Nzoia sugar belt noted that inadequate crushing capabilities at factory level and ageing equipment and technology are some of the challenges facing sugar cane farmers in the region.
Most factories pay less than Sh3,000 per tonne of sugar cane, which farmers consider too low.
Joshua Maina from Turbo, Uasin Gishu County, who diversified to sugar cane production six years ago, stated that it is no longer profitable to invest in the subsector due to the unstable market and declining producer prices.
The Nzoia Company has unveiled fast maturing crop production using farrow irrigation to address cane shortage and hopes the new measures will shore up production and sugar volumes.
