Mumias Sugar farmers set to receive bonus payout

Mumias Sugar Company is expected to begin paying cane farmers annual bonus. [File, Standard]

Mumias Sugar Company farmers are set to receive the first ever sugarcane bonus payout. 

Speaking at the funeral of Mama Maayi Nanyama, the mother of National Assembly Speaker Moses Wetangula, in Kabuchai Constituency, Bungoma County, President William Ruto said he has successfully managed to cure the management problem that was ailing the miller and farmers are set to rip big bonus this month.

“The first time Mumias farmers are going to get bonus from sugar is this month and not this year and I will be there in person to supervise because we have allocated and invested money for leasing and other things so that we can make sure that the same way we do for coffee and tea farmers in terms of bonus it is the same way we must do for our cane farmers,” he said.

The Head of State said he has directed the sugar factory to pay farmers and workers on time and pay bonus every year.

The factory, which resumed full operations a year ago, had been dogged by numerous court cases filed by West Kenya Sugar Company Chairman Jaswant Singh Rai blocking the lease of Mumias Sugar to his brother Sarbi Singh Rai of Sarrai Group. This forced President Ruto to intervene through his famous, mambo ni matatu decree  that led to the withdrawal  of  all court cases against the miller.

President Ruto promised to address woes facing Nzoia Sugar Company.

“I am done with Mumias Sugar Company and things are well. On the issue of Nzoia Sugar Company, we understand we have cases in court.  Those who have gone to court should know that farmers are waiting to see how we are going to change the management of our factories. After the case is over, I will be coming to Nzoia to ensure that we reform the management so that its farmers can also get bonuses, and prompt payment of farmers, and the same should be done to employees,” he said.

He said the annual bonus was for the use of some 9,000-nucleus estate by the Mumias investor.

"First the investor must pay farmers and workers on time then share the profits he gets for using the nucleus which is public property, owned by the farmers," said Ruto.

"He does not own the factory and nucleus estate there is no way he can do business on it and pocket the money alone."

Ruto said the company agreed to pay the farmers some Sh600 million as bonus even as he held that Sh1 billion was achievable.

The head of state said the bonus would be adjusted to resonate with the economics of the day so that the farmers keep benefiting as the factory runs stating that the allocation of Sh3 billion for all state-owned factories was for the cane development programme to help farmers increase production.

"The cane development money will be specifically for sugar millers to help farmers grow enough cane to process sugar and stop importing sugar from Brazil and Egypt," said Ruto.

The President regretted that the country has been importing sugar for a long time and due to recent reforms in the sector, cane farmers have produced sugar on 200,000 acres a move that has for the first time made the country not import sugar.

Kakamega Governor Fernandes Barasa welcomed the President's decision to assent to the Sugar Bill, stating that it will revitalise the cane sector in the region and countrywide.

“I want to thank the President for assenting to the Sugar Bill and because of that our cane farmers are going to get a bonus this year because as Western region we depend on sugarcane farming as the backbone of our economy and we are going to walk with you to realize the efforts of reviving the cane sector for the good of our people,” said Barasa.

 “Mumias investors must seriously take into account the interests of our farmers by paying them on time, same as workers. The nucleus estate is ancestral land and belongs to our people and the investor must pay a bonus for using it,” he added.