The government has outlined the distribution plan for the Sh654 million allocated to sugarcane farmers in the Western region. This fund, the first installment aimed at seed cane development, received approval from the Treasury in early June. President William Ruto’s commitment of Sh2 billion towards sugarcane development through state-owned mills in the region includes this allocation.
The funds, already transferred to the Agriculture Food Authority (AFA), will also address outstanding arrears owed to employees of sugar companies.
“We received exchequer for the appropriated budget of Sh654 million in the financial year 2023-24 supplementary II for support to sugar reforms,” reads the letter signed by Agriculture Principal Secretary Paul Ronoh.
In a letter dated July 5, Ronoh outlined the allocation of the Sh654 million disbursed to the sugarcane sector in the Western region. Of this amount, Sh354 million is designated for settling farmers’ arrears, while Sh150 million is allocated specifically for addressing employee arrears at Nzoia Sugar Company.
Another Sh150 million will go towards clearing arrears owed to employees at Chemelil, Sony, and Muhuroni sugar companies. Part of this allocation, under the Sh150 million, will also support the Kenya Agricultural and Livestock Research Organisation in multiplying new varieties of sugarcane seedlings.
The release of these funds represents a significant step in the government’s commitment to fulfill its promises and bolster the agricultural sector. This initiative follows President William Ruto’s pledge during his visit to the Western region to support sugarcane farming, which holds substantial economic importance for Kenya.
During Mashujaa Day celebrations in Bungoma, President Ruto highlighted that the government had already written off debts totaling Sh110 billion owed by sugar factories, accumulated over four decades.
This decision, approved by Parliament following a Cabinet meeting in October last year, aimed to revive Chemelil, Muhoroni, Miwani, Nzoia, and Sony sugar companies. The debt included bank loans, tax arrears, penalties, as well as dues owed to farmers and employees.
Furthermore, President Ruto underscored the introduction of a new leasing model designed to ensure timely payment for cane deliveries by farmers.
“This will ensure timely wages for factory workers and bonuses to sugar cane farmers every end of the year,” he stated.
