Sugarcane harvesting. Cane miller in Busia will benefit farmers. FILE
A private investor plans to construct a Sh3.6 billion sugar factory in Busia County, setting stage for increased competition in the market.
The cane miller will be constructed at Busibwabo area in Matayos with a feasibility study of the sugar project already complete.
Kenya Sugar Board (KSB) approved the project and has issued a licence to the investor.
The factory will benefit many farmers in Busia who have to transport their cane to either Mumias or Malava, incurring extra costs.
Hassan Adudo, the agriculture manager of Busia Sugar Industries said 26,000 hectares of land has been set aside for growing sugar cane and about 30,000 farmers will be contracted to supply the miller.
“We shall start the exercise of listing our farmers from next week and they can access loans for cane development in financial organisations,” said Mr Adundo.
He said the National Environmental Management Authority is to assess the area.
KSB western regional manager Laban Mulehi said the factory had been registered and it should start operations as soon as it completes sugar cane development programmes.
He said that other matters related to contracting farmers rests with the company as the board has already given the go ahead to put up the milling machine.
An environmental expert Charles Mbara said that an impact assessment carried out indicates that only 11 households will be displaced to pave way for the miller.
He, however, said the families will be compensated. “The families will be compensated by the investor for all lost properties,” said Mr Mbara.
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