The government has released Sh 239 million towards the Mumias Sugar Company bailout programme.
According to Mumias East MP Benjamin Washiali, Treasury gave out the money last week.
"We call upon the management to direct the funds into offsetting millions of shillings owed to farmers for cane deliveries," Washiali told The Standard on phone Tuesday.
Early last year, President Uhuru Kenyatta issued a Sh1 billion bailout.
"We urge the government to consider injecting more money into Mumias sugar to help it overcome current challenges," said the federation Deputy Secretary General Simon Wesechere.
Moses Owino in charge of communications at the company promised to divulge further details over the bailout funds received by the miller later. "I have been away but promise to share the details later," he said when reached earlier for a comment.