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Agriculture CS Mwangi Kiunjuri on Tuesday stated that the government had decided to do away with Sh35 billion debts owned by various sugar companies.
Kiunjuri affirmed that the move would help facilitate the privatisation of the state-owned sugar firms and help revive them.
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“By the time the President ordered we pay farmers in October, Chemelil Sugar, for example, owed us Sh210 million in November which has now accumulated to Sh271 million.
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“Nzoia too owed us Sh231 million, Mumias (Sh400 million), Sony (Sh168 million) and Muhoroni (Sh229 million).
“Muhoroni Sugar Company is requesting an injection of Sh500 million from us. Sony Sugar has also been surviving on loans. In fact, they are closing next week for maintenance which requires Sh281 million,” remarked Kiunjuri.
The Agriculture CS however did not explain the time frame for the accumulated debt.
Kiunjuri ordered by Uhuru to pay sugarcane farmers
In January this year, Kiunjuri and Treasury CS Henry Rotich had been ordered by President Uhuru Kenyatta to pay sugarcane farmers money owed to them by the state.
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“Last year I directed the Ministry of Agriculture to finalise the audit and verify pending payments to sugarcane farmers.
“I am pleased to confirm the process is complete. I therefore direct the Ministry of Agriculture and the Treasury to immediately start the process of paying the farmers,” stated Kenyatta.
In October 2018, during the Mashujaa Day celebrations, the President had directed the farmers to be paid their arrears in a month’s time but that had not been fulfilled by the CS.