Tie milling permits to sugarcane, says Ameyo

Sugar industry players have asked the national government to review the policy of licensing millers, saying shortage spawns vicious cane poaching in western Kenya.

They want the licensing of new factories to be pegged on availability of cane to crush.

“You cannot be given a licence to take cane away from those who have invested to produce it. This policy is hurting the sugar industry,” said Dan Ameyo, the outgoing chairman of Mumias Sugar Company board. He said it was fair that the government review the policy because each sugar factory puts in resources to support cane-growers.

“Apart from the investment which the sugar company should recover, they also expect profit. If the factories invest and because someone has quick money and come and harvest, the company loses the profit expectation and cane,” he said

Mr Ameyo said the cane shortage was affecting all the sugar factories.

Francis Wangara, the Kenya Union of Sugar Plantation Workers secretary general, said the poaching problem could be addressed if each of the millers came up with own cane development programme.

“The companies are likely to close down if cane development plan is not in place. Each miller needs to prove that they have enough raw materials to produce,” said Mr Wangara.

Last week, Nzoia lost two employees who had gone to protect their cane from suspected poachers.

“Most millers are hanging on cane that they did not invest in. Other mills are operating without source of raw materials. The mills should be closed down because they are the ones causing problems in the industry,” said Mr Wangara on Friday during the Mumias Sugar annual general meeting in Kisumu.

Mr Ameyo officially relinquished his post even as shareholders demanded the disbandment of the board, accusing it of incompetence.

Farmers claimed Mr Ameyo was leaving the company worse than he found it. He, however, said the miller was heavily indebted when he took over. Mumias owes farmers Sh650 million.