Sugarcane farmers hail plan for annual bonus payout in reforms

Kwale Sugarcane Outgrowers Farmers Association Chairman David Ndirangu. [File, Standard]

Sugarcane farmers have hailed the government’s plan for an annual bonus payment similar to that paid to their tea and coffee counterparts.

Currently, cane farmers are only compensated for the weight of sugarcane delivered. But as President William Ruto announced recently, beginning at the end of this month, they will receive bonus payments for the first time.

The President, who spoke during the Kakamega Governor’s Cup 2024 tournament at the Mumias Sports Complex, Kakamega County earlier this week said the move is part of reforms aimed at revamping the once-thriving sugar sector.

He said as part of the plan, Mumias Sugar Company has been placed under new management to ensure farmers and workers are paid on time.

“The leasing programme is going to give us the resources to pay our hard-working farmers a bonus for their supply of cane to Mumias factory,” said President Ruto.

Sugarcane farmers said the move was long overdue.

Kwale Sugarcane Outgrowers Farmers Association Chairman David Ndirangu said a bonus payment would boost the morale of cane farmers.

“We commend the Head of State for his foresight in ensuring that farmers, crucial to a heavily agricultural nation like Kenya, are content in their work,” he said, adding that it had come at an opportune time at the beginning of the New Year.

“Kwale International Sugar Company (Kiscol) and Kwale farmers will benefit the most since their new varieties and cane mature after 12 months,” said Mr Ndirangu.

He said cane farmers also ought to benefit from State subsidies such as the government’s cheaper fertiliser programme, better seed varieties and training just like farmers of other key crops.

Mr Ndirangu also called for the upgrading of access roads to ensure easy access to milling factories.

In Kwale, Kiscol operates a modern milling plant in the former defunct Ramisi Sugar Company in Msambweni constituency, offering affordable locally grown sugar for the production of sugar, ethanol, and electricity.

Kiscol encompasses 5,500 hectares of cultivated cane, with the sugar mill processing 3,000 tonnes per day.

It also boasts an 18-megawatt bagasse-fired power plant and a sophisticated irrigation and water management system.

The miller uses a sub-surface drip feed irrigation in its nucleus farm. There are some 1,500 registered outgrowers on some 4,500 hectares of land.

During his visit to Kakamega, President Ruto said it was unfair to pay bonuses to other farmers cultivating important and strategic produce like tea and coffee while leaving out cane farmers.

“The way we pay tea and coffee bonuses is the same way we must pay cane farmers from this region,’’ Ruto stated while revealing that all farmers registered with the government would benefit from the pay.

The President further announced that the government has made the necessary arrangements to facilitate the payouts to the hundreds of farmers.

In 2019, Kenya had approximately 250,000 small-scale sugarcane farmers, who supplied most of the cane milled in the country.

The 2024 season was a historic year for the nation after the Cabinet approved a decision not to import sugar this year following bumper sugar harvests locally.

Industry stakeholders have further attributed good and improved cane management to increased production.

Last year, producers harvested 800,000 metric tonnes compared to a national average of 700,000 metric tonnes in previous years.

State-owned sugar companies have a collective debt of approximately Sh128.06 billion.

As part of ongoing sector reforms, last year, the Ministry of Agriculture approved Sh654 million to help struggling sugar millers clear debts owed to farmers and workers.

Out of the funds, Sh354 million was to go towards clearing debts owed to farmers at Nzoia, Muhoroni, Chemelil, and Sony millers.