Workers oppose plans to merge Muhoroni, Chemelil sugar factories

Kisumu,

Sunday September 10, 2023

KNA by Chris Mahandara

A proposal by the National Treasury to collapse state owned Muhoroni Sugar factory and merge it with Chemelil Sugar factory has met resistance from workers.

Kenya Union of Sugar Plantation and Allied Workers Communication Director Lincoln Aveza said the government did not consult widely before arriving at the decision.

Aveza said it was not clear what will become of the workers at Muhoroni Sugar Factory, which in the proposed plans is to become a sugar cane collection center for Chemelil Sugar factory, adding that the workers shall vehemently oppose the move.

Muhoroni Sugar factory which is under receivership, he said, is owed workers Sh1.1 billion in salary arrears, adding that the proposed plans to collapse the facility won’t be allowed until the debt is cleared.

“We need to know how these workers will be paid before we commence any discussion on either collapsing, merging or leasing the factory,” he said.

Speaking during a joint Finance and agriculture parliamentary committee sitting in Kisumu, Aveza said the workers have undergone untold suffering and the only hope left for them is to have the factory revived and their dues cleared.

The National Treasury, which has already tabled the proposals in parliament was insensitive to the plight of the workers and thousands of farmers who are also owed billions of shillings by the struggling miller, added Aveza.

"If this factory is collapsed today there is no clear roadmap on who will take over the debts and what will become of thousands of households that depend on it for a living," he said.

The idea that it was no longer tenable to have both Muhoroni and Chemelil, which are in the same area functioning was far-fetched, according to Aveza, since the mills have enough nucleus and farmers to supply cane.

At the same time, he said, licencing of new private millers was to blame for cane shortage, which has hit the two factories, while urging the government to relook into the matter, adding that before an investor is licensed to run a sugar factory, the government must ask where the raw materials are going to come from.

"The problem we have is the misguided licensing of factories allover, which has resulted into cane poaching and other malpractices thus killing our factories," he said.

His sentiments were echoed by Robinson Otieno, a farmer, who said the factory which is one of the oldest in Kisumu County was a lifeline for thousands of people and despite the difficulties it was undergoing, the government must explore ways of reviving it.

"This company has over the years been the largest employer and source of livelihood for our people particularly in Muhoroni Sub-County. We are therefore perturbed by the proposal to fold it at a time that we really need it up and running," he said.

Otieno said farmers have invested heavily in the factory which was established in 1964, while calling for sober discussions on the matter, before a decision is made.

In a memorandum to the National Assembly on action plans to revive and commercialize state owned sugar companies, the National Treasury has proposed the leasing of five state owned millers.

The treasury argues that the merger of Muhoroni and Chemelil 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 40,571 hectares and stabilize supply of raw materials.

However, 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 since collapsed has not been touched due to pending court cases.

In the meantime, investors interested in Chemelil and Muhoroni will be required to bid for both.

At the same time, the Parliamentary Budget Committee Chairman Francis Kimani said from the document it was not very clear how the leasing is going to be operationalized.

Subsequently, he directed the National Treasury to table before the committee a clear leasing model as it retreats to write the report.

"This committee is going to table a report on the floor of the house about these proposals. Before we do that we must have a clear understanding about the leasing model being proposed," he said.

Courtesy; KNA