Sugarcane harvesting.[Photo/Nation]
Muhoroni Sugar Company is in trouble after farmers threatened to stop supplying raw materials if their arrears of up to Sh270 million are not paid.
The State-owned company, which is in receivership, is in trouble for failing to pay the farmers for the last seven months.
The more than 23,000 farmers from Kisumu and Nandi counties claimed the management has ignored their plight despite the fact that they have been supplying the raw material.
Kenya Sugarcane Growers Association Secretary-General Richard Ogendo put the blame on the joint receiver managers Fredrick Kebeney and Asa Okoth of running down the company and impoverishing the lives of farmers.
“The company harvests canes and crush daily yet they cannot pay us. We want to know where the managers are taking the money.” Mr Ogendo said.
He pointed out that Muhoroni Company also receives massive cane harvest from 15,000 acres from nucleus farms.
The farmers on Monday called upon the government to institute an audit to unearth the alleged graft at Muhoroni and Miwani which is also on receivership after storming the place.
“The joint receiver managers should be removed over corruption and incompetent management which has seen the factories in the brink of collapsing,” he said.
The Kesga boss stated that Muhoroni was last audited in 2014 hence noting that a serious audit is urgently needed by competent auditors to “unravel” the long-held scandals.
“We are also appealing to the local leaders to push the national government to pay us and save the company from collapsing,” he said.