Kenya: Nzoia Sugar to Resume Operations After Sh500 Million Government Bailout

Nairobi — Sugar miller Nzoia Sugary Company is expected to resume production this Sunday after President Uhuru Kenyatta announced a Sh500 million bailout that will help the firm pay arrears that it owes to farmers and workers.

Uhuru made this announcement when he visited the factory on Tuesday while on his tour to launch various government projects in the Western and Nyanza regions of the country.

Kenyatta underscored that his government has been committed to ensuring sugarcane farmers are empowered but some politicians who are supposed to effect his directives have sabotaged his efforts thus crippling the sugar production sector.

He directed the Agriculture CS Peter Munya to release the funds to enable the factory to resume normal sugar production.

The funds will see Sh450 million paid directly to the accounts of farmers and the remaining Sh50 million paid to factory workers by Friday.

Uhuru further noted that despite the government releasing a bailout that amounted to Sh1.2 billion to the factory last year, the funds were not used for the purpose they were meant to serve thus making the effort null and void.

Munya confirmed that 900 farmers have already been paid and the remaining farmers will be paid their money by Friday 5 August.

Local leaders in the region including Kanduyi Member of Parliament Wafula Wamunyinyi appreciated the move by the president since it will be a major boost to the farmers in the region as it is their major source of income.

The sugar miller suspended its operations on May 19 for routine maintenance, an announcement that was made by the company's MD

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