Governor Nyong’o faults Muhoroni Sugar management for abrupt closer of the factory.

Kisumu Governor Prof. Anyang Nyong'o addressing a meeting of sugar cane farmers and Muhoroni Sugar Company Management.Nyong'o has faulted a move by the management to shut down the factory without consultation-Photo By Dickson Odhiambo

By Dickson Odhiambo

   

  June 8, 2018.

Governor Nyong’o faults Muhoroni Sugar management for abrupt closer of the factory.

KISUMU Governor Prof Peter Anyang’ Nyong’o has faulted the management of Muhoroni Sugar Company in the County for closely the factory abruptly without proper consultation.

Nyong’o claimed that the two Receiver Managers of Muhoroni Sugar Company recently closed it down without doing proper consultation even with his office as the Governor of Kisumu County where the sugar factory is situated.

Addressing the meeting of joint sugarcane farmers representatives and the receiver managers on the way forward so as to try and unlock the current impasse at the factory which has been shut down after the Kenya Revenue Authority claimed huge arrears recently, Nyong’o said the management should have sought thorough consultation before resorting to close it for six weeks.

Nyong’o said an amicable solution must be found so as to help address the current problems facing the factory like the issue of non-payment of arrears it owes the sugar cane farmers who supplied the raw material to the factory.

“The issues in Muhoroni Sugar Company like non-payment of arrears it owes the sugar cane farmers as well as the suppliers among others must be addressed and an amicable solution is found,” Nyong’o says.

He said the issue of selling sugar cane from Muhoroni Sugar cane growing area to private millers is just a short term measures, adding that a long term solution should be found to this.

“The long term issue is to get sugar cane from the farmers, crush it, sell the sugar and pay the farmers and this is a long term measure but the issue of selling the sugar cane in piecemeal to a private miller will not help much,” Nyong’o added.

He said as a county Government of Kisumu should be armed with a support from both the receiver managers and the sugar cane farmers, adding that such support will help in providing information which will be presented to the national Government.

Nyong’o has proposed the re-introduction of the zoning of the sugar cane areas so as to avoid the issue of sugar cane poaching.

He has also proposed the bringing back of the sugar development levies in the sugar industry.

Nashon Osieko, the General Manager of Muhoroni Sugar Company who addressed the press together with the two receiver managers after the meeting said the company owe sugar cane farmers over 470 million as arrear not paid to them after delivering sugar cane to the factory.

He adds that the company also owes suppliers over 250 million and about 107 million to its staffs as emoluments.

He adds that the company owes Kenya Revenue Authority historical arrears of over 860 million, adding that those are the debt position of the company.

ENDS: