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President William Ruto has revealed that the government plans to pay sugarcane farmers bonuses, akin to those in the tea sector.

The announcement was made during his address at the Madaraka Day celebrations held at Masinde Muliro Stadium in Bungoma.

Ruto’s assurance

Addressing the residents of Bungoma County, President Ruto assured farmers in the Sugarbelt regions that the government will ensure prompt payment by millers.

Ruto confirmed that workers in the milling firms would also receive their wages on time, concluding with the introduction of a bonus scheme for sugarcane farmers.

“Mumias is now sorted, and I would like to assure you that in Miwani, Chemelil, and Muhoroni, we are finalizing the plans as announced. There will be three key actions: farmers will be paid promptly, workers will receive their wages on time, and, just as we pay bonuses to tea farmers, we will do the same for sugarcane farmers as we implement the plan,” President Ruto announced.

The President emphasized his commitment to revitalizing the sugar industry to maximize value for all stakeholders.

To achieve this goal, the government has written off Ksh110 billion in debt for sugar factories and is working on a leasing model to ensure prompt payments.

“The sugar industry is a highly strategic sub-sector, whose value chains have been the mainstay of the local economies of our sugar belt, and a generator of much-needed jobs. For this reason, we are firmly committed to ensuring that the sugar industry returns maximum value to all actors in its value chains, beginning with the initial and foundational entrepreneur: The cane grower.

“To accomplish this, we have implemented a number of radical measures: We have written off Ksh 110 billion worth of sugar factories’ debts accumulated over 40 years. A new leasing model will guarantee prompt payment for cane deliveries by farmers, timely wages for factory workers, and bonuses to sugarcane farmers every end of the year, like other crops,” he announced.

Ruto on government approval

Ruto also urged a quick review process and the incorporation of proceeds from by-products. He further stated that the government had approved the first tranche of Ksh600 million for seed cane development.

“I call upon relevant agencies to accelerate the review process and to incorporate proceeds from by-products. As part of my commitment to invest Ksh2 billion into sugarcane development through state-owned mills, after leasing is completed, I am proud to announce that the government has approved the first tranche of KSh 600 million for seed cane development, and the National Treasury shall shortly release these funds,” he concluded.

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