Political rivalry threatens sugar firm’s operations

What you need to know:

  • Groups had lined up candidates for board chairman before the previous one retired

The wrangles threatening production at the Nzoia Sugar Company have been blamed on the rivalry in both Ford Kenya and ODM parties.

Some party factions are opposed to the appointment of Mr Julius Nyarotso as chairman of the board in place of Mr Burudi Nabwera, whose term has expired.

A section of farmers, their leaders and politicians say Mr Nyarotso, a former chairman of the Kenya Sugar Board (KSB), is not a suitable candidate for the position because of a alleged conflict of interest.

They say Mr Nyarotso, an engineer, has previously worked as a consultant for the factory and is also a contractor and supplier.

Mr Nyarotso has held a series of public meetings with farmers in the Nzoia sugarbelt in a bid to reduce tensions and address other issues raised by the growers.

The factory, which crushes 3,000 tonnes of cane a day, is fed by nearly 50,000 farmers in the larger Bungoma District.

Mr Nyarotso, accompanied by Mr Saulo Busolo, a director of the Kenya Sugar Board who represents the Nzoia sugarbelt, and top managers at the factory, held meetings at Bukembe and Bokoli on Monday.

On Tuesday, they were at Mukhe and on Thursday, the team will be at Lukusi and Sitikho in Webuye before heading to Mwibale (Kanduyi) on Friday and Nalondo in Sirisia on Saturday.

Preferred man

Mr Busolo blames the rising tension among farmers on party politics.

‘‘I’m a politician but the moment I joined KSB I changed to sugar politics, which is fighting for the interests of farmers. We cannot mix the politics of 2012 with sugar affairs because farmers will end up being the losers,’’ Mr Busolo told the Nation on Tuesday on the sidelines of a meeting in Misikhu.

The factory, he said, had been performing well, harvesting cane and paying farmers on time and any threat to its operations must be opposed.

Factions in the two dominant parties in the region started lobbying for their preferred man to take over as chairman of the board even before Mr Nabwera’s term ended. But the fight became public after last month’s naming of Mr Nyarotso to the position.

Mr Nyarotso is a close ally of Foreign Affairs minister Moses Wetang’ula, who is accused of pushing for his appointment.

Mr Wetang’ula’s rivals in Ford Kenya, led by Saboti MP Eugene Wamalwa, had their own candidate, Mr Raphael Wanjala, a former Budalang’i MP.

MP Alfred Khang’ati from the ODM, was said to have been rooting for one of his predecessors, Mr Lawrence Sifuna.

Mr Khang’ati, in whose Kanduyi constituency the factory is located, said Mr Nyarotso was a contractor, supplier of materials and a consultant at the factory.

According to the MP, a qualified and experienced person without any interests at the company should be appointed to steer the company to privatisation.

Mr Nyarotso admits that he has worked as a consultant for Nzoia in the past but denies doing any other business with the factory.

He says he is no longer consulting and does not see how his past association will adversely affect his performance.

Most farmers, he says, support his appointment, “except a few being incited by those who lost in the race for the job”.

“I understand their bitterness after they lost. But I am keen on transforming this factory,” he said, adding that he would concentrate on improving the factory’s efficiency and profitability.

This is the message he is taking to farmers during the meetings.

But at Bokoli on Monday, 14 people were arrested for allegedly planning to disrupt the meeting.

Mr Joash Wamang’oli, the chairman of Nzoia Outgrowers Company (Noco) and who has been one of Mr Nyarotso’s fiercest critics, led the farmers in demanding that the company ensures that cane is weighed in the farms to reduce losses.

Increase prices

Farmers also demanded that cane prices be increased from Sh3,100 to Sh4,000 per tonne because the price of sugar had gone up.

Mr Wamang’oli, a former MP, accused the company of exaggerating mileage from the farms to the company to overcharge farmers for transport. He also said the factory must pay farmers arrears of up to Sh26 billion before it was privatised.

Mr Nyarotso promised to look into the transportation issue and said he would work closely with farmers to improve performance.

Mr Wamang’oli had taken the battle against the new chairman to a recent ‘Yes’ rally in Bungoma Town.

After he spoke at the rally, Prime Minister Raila Odinga directed Agriculture minister Sally Kosgei to reconstitute the sugar company’s board.

But Mr Odinga’s intervention only brought more disagreement.

The Kenya National Sugar Growers Union (KENSGU) said the move would not be in the interest of the factory.

National chairman Joseph Muleme said Noco, which is represented by Mr Wamang’oli, was not the only group with an interest in Nzoia and as such it could not dictate who became the chairman of the factory.

Speaking in Kisumu where he was accompanied by branch secretary Ndwamwe Mukenya, he said those opposed to Mr Nyarotso should take the matter to the Sugar Arbitration Court instead of political rallies.

Provide services

Mr Busolo said it was not the business of farmers to appoint the chairman of the board.

‘‘As long as the person named is qualified and can provide services to the farmers, their business is to grow cane and get paid for it,’’ he said.

And Mr Nyarotso, he said, brought a wealth of experience that would be good for Nzoia and the farmers.

“He is very knowledgeable about the sugar sector. He will add a lot of value to the company,’’ Mr Busolo said.

Additional reporting by Stella Cherono and Ouma Wanzala