Chemelil Sugar Company has appealed to cane farmers to resume deliveries of raw materials to the factory to avoid plunging into an imminent production halt.
The appeal comes in the wake of an acute shortage of cane supplies to Chemelil, which has now forced the firm to accumulate fresh sugarcane daily.
The factory has to accumulate cane for at least three days to be able to mill sufficiently.
Terming the shortage as a serious crisis that could stall the factory’s operation, the management on Wednesday, March 1 called for an urgent meeting with stakeholders.
The meeting brought together farmers, contractors, and transporters to strike an agreement to work together.
Chemelil Sugar Factory Manager M Joseph Kiilu assured the suppliers including transporters that they will effect prompt payment of their dues in good time.
This is basically to avoid delayed payment protests to sustain their milling operations.
The management pleaded with its suppliers of raw materials down to the line production value chains to resume constant cane supplies even in small quantities.
“We want to assure you that when we mill cane, we shall continue to pay you in good time to avoid protests and withdrawal of key supply services to us,” Kiilu said.
Chemelil Sugar debt
Currently, the firm owes both cane farmers and transporters and cane contractors, cumulatively Ksh106 million in arrears.
Currently, the firm owes both cane farmers and transporters and cane contractors, cumulatively Ksh106 million in arrears.
This is for the deliveries made in November last year to 2022/2023 January this year.
“We are remaining with about Ksh124 million arrears, which are now servicing to clear,” said Kiilu.
But this is only the latest debt.
Chemelil is indebted to the tune of Ksh700 million, debts accrued over the years.
Kiilu spoke as cane transporters decried delayed payments as the reason that they had to withdraw their tractors from hauling cane to the factory a fortnight ago.
