Ramisi’s revival sweetens economy

Revival of the Ramisi Sugar Factory, which closed in 1988 destroying the livelihoods of thousands of Kwale residents, is on course and new investors are hoping to crush the first cane harvest in December next year.

“The factory was the backbone of the Kwale economy. When the machines were running one would walk in a homestead and borrow up to Sh50, 000 but today many households are struggling to put bread on the table,” said Mr Abdalla Ngozi, the former Msambweni MP who persuaded the Government to bring in new investors in 2007.

The factory, to be built by Kwale International Sugar Company is expected to cost about Sh24 billion and once fully operational is expected to create about 15,000 jobs, supporting more than 1.5 million people.

Mr Gachanja Githende, a researcher with the Institutional Development and Management Services said the collapse of the factory was caused by corruption and political interference.

The factory operated from 1927 and was run by the Madvhani Group from 1947 to 1987.

It employed more than 3,000 people and operated on 45,000 acres, offering support to 4,000 families who relied on cane farming.

The Kibaki administration intervened in the acquisition of more than 28,000 acres of former Ramisi land whose title was held by the Bank of India as security for a Sh300 million loan guaranteed by the Government.

Kwale International Sugar Company (Kiscol) was allocated about 15,000 acres to build their factory and develop the nucleus farm.

The balance of 13,000 acres was to be divided into five and half acre plots and was allocated to squatters, with the intention of each putting three acres under cane, two acres for subsistence and a half acre for their homestead.

Mr Ngozi is today mobilising locals to register as out-grower farmers.

Kiscol agriculture manager Patrick Chebosi said the factory, once running, will require 20 percent of its cane requirement from out-growers.

Close to 1,000 farmers have so far registered, and they will be given planting materials next year.

The number is expected to grow so the company eventually receives 50 percent supply from out-growers.

When President Kibaki re-launched Ramisi in 2007, he said the Government would expand the area under cane production to at least 40,000 acres, which would enable the factory to double the initial 3,000 tonnes crushing capacity.

“We have engaged in multiplying cane field in the last 18 months so that by the time the factory is in ready, the raw materials will also be available,” Mr Chebosi said, adding that an Indian firm had already been contracted to bring in factory equipment.

The firm, which recently sold a 20 percent stake to Mauritius sugar giant Omnicane to manage operations, is currently increasing the acreage of the nucleus farm.