Mumias Sugar to pay farmers by end month

More than 10,000 farmers contracted by Mumias Sugar Company have been paid their dues as another lot waits in the queue.

Farmers’ pay was one of the thorny issues facing the miller that prompted the Government to intervene two months ago when President Uhuru Kenyatta gave the company Sh1 billion.

So far, the company has paid out Sh360 million to farmers after a thorough scrutiny of the records despite cases of ghost farmers that had slowed down the process.

“The company has paid all contracted farmers whose accounts and plots were verified. We spent over Sh350 million of the Sh1 billion bailout by the Government.

“By mid this month, we will have cleared the remaining farmers, mostly private farmers, who supplied their cane to the factory,” said Chief Executive Officer Errol Johnston.

Mr Johnston said the company gave first priority to farmers’ arrears as directed by the President when he visited the miller.

He, however, acknowledged that the presence of ‘ghost’ farmers on the list delayed the payments.

Speaking to The Standard, through the corporate affairs manager’s office, Johnston said the company’s management was forced to physically verify farmers’ plots to avoid paying who had not delivered the cane.

Mumias has been struggling due to financial constraints and before closing for maintenance, it was only crushing 2,000 tonnes, which is below the normal crushing capacity of 7,000 tonnes per day.

The miller’s crushing capacity has been improved as part of the recovery process.

“The remaining farmers will be paid by mid this month,” the CEO said.

One of the contracted farmers, Jack Eungu, confirmed he had been paid while another, Justine Mutobera from Mumias East, said he had not received his dues.

“I can confirm to you that I received my dues, which the company owed me for a long time,” said Mr Eungu.

Confirmed payment

Mr Mutobera said he had delivered 30 tonnes of cane last year but he is yet to be paid.

“I have not been paid. I have not signed any document to know if I will be paid and how much I will be paid. I don’t know if their verification exercise is yet to be concluded,” said Mutobera who expects to be paid Sh95,000.

Kenya National Sugarcane Farmers Union Secretary General Simon Wesechere confirmed that contracted farmers had been paid their dues.

“The process of paying farmers is ongoing. Though most farmers have been paid, some have not received their payments,” he said.

He noted that the company had paid those owed Sh100,000 and below.

Mr Wesechere said the union had held a meeting with the miller and agreed that subsequent harvests must be paid within 30 days after cane delivery. He advised the miller to ensure the farmers are paid promptly to curb cane poaching and lack of raw materials.

“We ask the management to speed up the process of paying farmers their dues so that they can regain their confidence in the company,” he said.