DAN AMEYO

Firm writes off farm­ers’ debts

The Star (Kenya) - - News - SHA­BAN MAKOKHA @TheS­tarKenya

Mu­mias Sugar Com­pany has writ­ten off Sh600 mil­lion owed by farm­ers. The money was ac­cu­mu­lated from the Debit Re­turns the com­pany de­ducted from cane pro­ceeds for devel­op­ment. Chair­man Dan Ameyo said for Mu­mias Sugar to re­main sus­tain­able and prof­itable, cane devel­op­ment is very vi­tal.

Mu­mias Sugar Com­pany has writ­ten off Sh600 mil­lion owed by farm­ers.

The money was ac­cu­mu­lated from the Debit Re­turns the com­pany de­ducted from cane pro­ceeds for devel­op­ment.

Chair­man Dan Ameyo said the com­pany’s big­gest re­source is raw ma­te­rial and for Mu­mias Sugar to re­main sus­tain­able and prof­itable, cane devel­op­ment is very vi­tal. “That is why we have re­ha­bil­i­tated a third of the com­pany’s nu­cleus es­tate for cane pro­duc­tion, be­fore we move out to farm­ers to en­sure there is cane avail­abil­ity,” he said. Ameyo spoke at the Mu­mias Sugar Com­pany Guest­house on Tues­day. He was with man­ag­ing di­rec­tor Eroll Johnson.

The chair­man said a third of the Sh2.16 bil­lion bailout given by the govern­ment has been paid to farm­ers.

“We used more than Sh750 mil­lion to set­tle farm­ers’ out­stand­ing ar­rears and we shall con­tinue pay­ing oth­ers as we get funds,” Ameyo said.

He said Mu­mias has de­vel­oped ways of help­ing farm­ers to grow sug­ar­cane and move out of the Debit Re­turns threat. “The DR comes up when farm­ers grow cane with the sup­port of the com­pany, but the cost of in­put over­whelms what comes out of their farms. We have, how­ever, waived all pre­vi­ous DR cases and we want farm­ers to come back to cane grow­ing and take it as a busi­ness,” Ameyo said.

He also urged Mu­mias em­ploy­ees to guide farm­ers on mod­ern meth­ods of grow­ing sug­ar­cane.

/SHA­BAN MAKOKHA

Mu­mias Sugar Com­pany man­ag­ing di­rec­tor Eroll Johnson and board chair­man Dan Ameyo ad­dress the press at the firm’s guest­house on Tues­day

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.