A section of farmers in Mumias, Kakamega County, have given the management of Mumias Sugar Company a two-week notice to disclose the firm’s financial status report.
Addressing the press on Saturday, March 8, the farmers, alongside other sugar industry stakeholders, raised alarm over alleged inconsistency in the financial management of the company.
The farmers, while venting their frustrations, questioned how the company was unable to pay a multi-million debt it owed to a local bank despite generating adequate revenue from the sale of sugar.
“We do not know what this receiver manager took over; we do not know the value of the assets, including the value of tractors that he took over when he acquired the company,” noted a representative of the farmers.
“We do not know the amount he received after selling the sugar he found there and how he utilised the money; we have never been given any status report,” he added.
According to the agitated farmers, if the company were to disclose its financial report within 14 days, they would file a petition against the firm owners for alleged embezzlement of funds.
They also demanded occasional consultation with the firm owners on critical issues affecting farmers to allow the company to make informed decisions.
“Out of all these farmers that you are seeing, we are going to demand that at every step of decision-making, we as farmers must be consulted,” said another representative.
The latest crisis at Mumias Sugar comes hardly two months after President William Ruto commended the firm's management, pointing out that the reforms carried out in the sugar company yielded significant results.
Ruto, who spoke in Kakamega County on January 20, during the launch of the sugar bonus programme, revealed that the payment of Ksh1.7 billion in farmers’ arrears and Ksh650 million owed to employees was part of the effort to revive the sugar sector.
In line with other measures outlined in the 2019 Sugar Taskforce, the Head of State said he had assented to the Sugar Act 2024, which establishes sugarcane catchment areas to improve milling operations.
“We have asked the Cabinet Secretary for Agriculture, Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector,” the Head of State noted.
“Last year, we produced a record 832,000 metric tonnes of sugar, and we anticipate that production will continue growing. By 2026, Kenya should be a surplus producer of sugar and begin exporting to the regional market,” he added.
