Union threatens to block leasing of sugar factories

Kisumu,

Tuesday, September 19, 2023

KNA by Chris Mahandara

The Kenya Union of Sugarcane Plantation and Allied Workers has threatened to move to court to block the proposed leasing of state-owned sugar factories if workers are not fully involved in the exercise.

Union Secretary General (SG) Francis Wangara said the proposal by the National Treasury to lease the struggling millers has sidelined workers who are owed billions of shillings in salary arrears by the firms.

Wangara said the over 8, 000 workers in the sector were a worried lot since they lacked a representative in the technical team spearheading the proposed leasing.

This, he said, was disadvantageous to the workers who have gone for years without pay with the millers owing them over Sh8 billion.

He said the government must incorporate a representative of the farmers in the technical committee overseeing the exercise to ensure that their interests are catered for as investors move in to take over the running of the mills.

This, he said, was necessary so that as the investors move in it is clear how the debt is going to be cleared and the fate of the workers after the lease is effected.

“As it is we don’t know how the salary arrears are going to be cleared. We must be on the table when these factories are being leased so that the investors and the government come out clear on how this issue is going to be resolved. An investor can come in today and lay off all the workers tomorrow,” he said.

“When the initial proposals to privatise the factories came up we went to court and blocked it because we were not involved. This time again we will not hesitate to block the leasing exercise unless we are brought on board,” he added.

Addressing the media in his office in Kisumu on Tuesday, Wangara said the union was also opposed to the proposed merger of Chemelil and Muhoroni Sugar factories.

The move as proposed by the National Treasury, he said will see thousands of workers lose their jobs adding that Chemelil Sugar alone lacked the capacity to crush cane from the two factories catchment area.

Putting up one big factory, he said, was time consuming and capital intensive, adding that it will only add to the suffering of workers and farmers who are reeling in debt.

“This is a thought that must not be forgotten. If it happens our members are going to lose their jobs and suffer,” he said.

He asked the government to competitively source for investors to modernise the two factories by installing new mills and equipment to enhance crushing capacity and efficiency.

In a memorandum to the National Assembly on action plans to revive and commercialise state-owned sugar companies, the National Treasury has proposed the leasing Nzoia, Miwani, Mumias, Muhoroni, Chemelil and South Nyanza Sugar factories.

In the proposals which are before the National Assembly, the National Treasury wants Muhoroni Sugar Factory merged with Chemelil Sugar Factory.

The Treasury argues that the merger of the two millers targets to achieve cane catchment of viable sizes as the government moves to revive the sector.

According to the document the merger of Chemelil which has 18,847 hectares of cane and Muhoroni which has 22,134 hectares of cane will produce a total of 40,571 hectares and stabilize supply of raw materials.

In the proposals Nzoia Sugar and South Nyanza Sugar companies which have 49, 862 and 81,415 hectares respectively have been left as they are.

Miwani Sugar, which collapsed, has not been touched due to pending court cases.

Investors interested in Chemelil and Muhoroni will be required to bid for both.

Courtesy; KNA