Nzoia Sugar Company seeks deal with banks to guarantee farmers for loans

Bungoma,

Wednesday, November 29, 2023

KNA by Roseland Lumwamu

Nzoia Sugar Company Chairman Alfred Khang’ati says that the company’s top management is in negotiations with various banks for a deal that will see contracted cane farmers get advance loans using their mature cane crop as collateral.

Khang’ati pointed out that the deal will cushion farmers during these hard economic times.

“This deal seeks to ensure that our farmers are cushioned and maintain constant cash flow that will aid them maximize cane production and supply,” Khang’ati noted.

Addressing the press at the company premises, Khang’ati said that the sugar firm will resume milling operations on December 4th 2023 after conducting minor factory repairs.

This is after taking a four month break from July 24, 2023 following a directive by the Agricultural Food Authority (AFA) to millers in the Western and Nyanza regions to cease milling operations to allow sugarcane to manure.

Khang’ati noted that, during the break, the company embarked on vigorous revamping of the nucleus estate supported by the Agricultural Development Corperation (ADC) and the National Youth Service (NYS).  

He urged farmers to keep their sugarcane ready for harvesting and desist from selling to unscrupulous dealers who will give them less value for their crop than they deserve.

“Please our farmers remain loyal to Nzoia Sugar Company, bring our cane here for crushing so that we grow our own,” he said.

The Company Chairman said that the management plans to offset a debt of Sh269 million owed to farmers before the start of the Christmas holiday.

Ezra Kotut, the company's acting managing director (MD) said the management is ready to maximize production.

Courtesy; KNA