Sugar board inks Sh450m bailout deal with Chemelil

Tractors offload sugarcane at the Chemelil sugar company yard. The firm has received a Sh450 million bailout from the Kenya Sugar Board (KSB) to rescue it from collapse. Photo/JACOB OWITI

Chemelil Sugar Company has received a Sh450 million bailout from the Kenya Sugar Board (KSB) to rescue it from collapse.

The country’s second largest sugar miller, which is based in the Nyando Sugar belt, has been unable to meet its obligations — including prompt payment of salaries and for cane deliveries — due to reduced sugar cane supply and an ageing factory.

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