More woes for Muhoroni Sugar as farmers demand Sh270m arrears
What you need to know:
- The State-owned company, which is in receivership, is accused of failing to pay the farmers for the last seven months.
- Growers accuse joint receiver managers Fredrick Kebeney and Asa Okoth of running down the company and impoverishing the lives of farmers.
- Former Kisumu mayor and farmer Sam Okello also questioned why farmers have not been paid for the canes which have already been crushed and sold.
Muhoroni Sugar Company is facing more woes after farmers threatened to stop the delivery of the raw material, demanding arrears of up to Sh270 million to be settled.
The State-owned company, which is in receivership, is accused of failing to pay the farmers for the last seven months.
Despite delivering their produce to the factory, the more than 23,000 farmers drawn from Kisumu and Nandi counties claimed the management has ignored their plight.
Kenya Sugarcane Growers Association Secretary-General Richard Ogendo accused joint receiver managers Fredrick Kebeney and Asa Okoth of running down the company and impoverishing the lives of farmers.
“The company harvests canes and crush daily yet they cannot pay us. We want to know where the managers are taking the money.” Mr Ogendo said.
He pointed out that Muhoroni Company also receives massive cane harvest from 15,000 acres from nucleus farms.
Alleged graft
The farmers who stormed the factory to eject the receiver managers on Monday also called on the government to institute an audit to unearth the alleged graft at Muhoroni and Miwani which is also on receivership.
“The joint receiver managers should be removed over corruption and incompetent management which has seen the factories in the brink of collapsing,” he said.
The Kesga boss said Muhoroni was last audited in 2014, noting that a serious audit is urgently needed by competent auditors to “unravel” the long-held scandals.
“We are also appealing to the local leaders to push the national government to pay us and save the company from collapsing,” he said.
Former Kisumu mayor and farmer Sam Okello also questioned why farmers have not been paid for the canes which have already been crushed and sold.
Risk of collapse
Mr Okello said Muhoroni risks collapse due to corruption, poor management and non-payment of farmers unless the county and national government act swiftly to address the challenges.
“We cannot have managers who do not have the interest of the major shareholders in the sugar sector at heart,” he added.
“Money should be availed to the factories to save it from collapsing. They are still State entities and government must act expeditiously,” he said.
Mr Okoth, however, assured the farmers that the management are working on the concerns raised and promised to address the plight of farmers by Thursday.
