Cane farmers want State to pay Sh1.7b arrears as schools reopen
Cane farmers want the government to make good their last year’s promise to offset Sh1.7 billion arrears owed to them before the new year, 2024 started.
Kenya Sugarcane Federation officials led by Killion Osur recalled that they were promised the payments by President William Ruto before the end of last year.
“We were told farmers will have all their outstanding arrears cleared before Christmas and New year. We have romped into the new year and so far, nothing has been seen,’’ he said.
Osur claimed as far as the federation was concerned the promises were only ink on paper, but the real material flows or cash in the farmers’ banks is yet to reflect.
“We want to hear that money has been paid and updates from our bank accounts received in real time and not that we keep on checking to find nil,’’ he said, adding: “This was disturbing because schools are reopening next week.”
“Farmers want to use the money to take their children to school and they may be stranded. We are urging the government to make good its promises by releasing the money to us as soon as they can,’’ said Osur.
Although the farmers were happy with the proposed changes in the sector and vowed to support every effort made by the State to reform the sector, they are against promises that take too long to honour.
“We have a good government that for the first time is keen on seeing farmers make significant investments in the industry and get good returns. But they should move with the speed to ease our frustrations,’’ said Osur.
Payment plan
Last year, the state moved fast to ease the pain of sugarcane farmers after the Cabinet approved a framework to support the millers to pay farmer arrears and salary arrears.
This was to take a 90-days, according to the payment plan, announced to farmers. The Cabinet also welcomed a resolution of the National Assembly to write-off loans owed and tax arrears by public sugar mills amounting to Sh117 billion. While on a tour of Migori County, President Ruto ruled out privatisation of sugar factories.
He had noted that it’s not a viable option as it would result in private firms assuming ownership of farms and opted for their divesture through commercialisation of the firms. Instead said the government will lease the five struggling sugar factories in a bid to revive the ailing sector.
The factories are Nzoia, South Nyanza (Sony), Chemelil, Mumias, Muhoroni and Miwani Sugar companies which are now struggling financially.












