President William Ruto has assured Nzoia Sugar farmers that their payment will be disbursed within the next two days.

Speaking during a meeting with the sugarcane farmers in Bungoma County on Thursday, February 1, the Head of State affirmed the government’s commitment to clearing the miller’s Ksh1.7 billion debt to ensure locals are compensated for their hard labour.

“We have calculated a Ksh1.7 billion debt, and when I leave this place in the next two days, all farmers will have received their money,” Ruto pledged,

President Ruto also assured the farmers that the company, at the heart of Western Kenya’s economy, would not be privatised or leased.

He confirmed that plans were underway to overhaul the management of Nzoia Sugar and breathe new life into the ailing sugar sector in the Western region, an initiative that will also see the county government of Bungoma enjoy an annual dividend of not less than Ksh300 million.

Profits

The new management is expected to enhance the efficiency of the sugar company’s operations to maximise outputs and profits.

President Ruto’s declaration comes months after the Cabinet approved the resolution by the National Assembly to write off loans and tax arrears owed by public sugar mills amounting to Ksh117 billion.

“To address the challenges that have bedevilled sugarcane farmers for decades, Cabinet welcomed the resolution of the National Assembly approving the writing-off of loans owed/tax arrears by public sugar mills amounting to Ksh117 billion,” the Cabinet said in a despatch after the meeting chaired by President Ruto at Kisumu State Lodge.

The cabinet also adopted a framework to enable the millers to pay farmer arrears and salary arrears through a 90-day payment plan.

“To reinvigorate public sugar mills, the backbone of the Nyanza/Western economy, Cabinet also approved a framework to support the public millers to pay farmer arrears and salary arrears through a 90-day payment plan,” the despatch added.

Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (in receivership), Muhoroni Sugar Company (in receivership), and South Nyanza Sugar Company (SONY) owe substantial amounts of money to farmers, and suppliers for goods and services rendered.

The companies are also grappling with huge salary arrears, unserviced loans and interest to financiers, taxes and tax penalties and unpaid statutory deductions such as the National Health Insurance Fund (NHIF) that have left the firms with a huge debt burden without corresponding assets.