Kakamega County government has set up a Sh100 million revolving fund to advance loans to sugarcane farmers as part of the efforts to revive Mumias Sugar Company.
Governor Wycliffe Oparanya said on Tuesday the fund targets cane development in the miller’s catchment as the Mumias receiver manager plans to start sugar milling in August.
But the plans face a hurdle due to the delayed procurement of rotors at Sh1 billion.
Ponangipalli Venkata Ramana Rao, the receiver manager, said Covid-19 restrictions delayed procurement and shipping of the equipment.
Mr Rao said engineers had completed an evaluation of the mills ahead of maintenance of the mills.
Mr Oparanya said the allocation had been factored in the 2020/21 budget.
“The county has finalised setting up of the revolving fund. We have followed all the required regulations in setting up the fund,” said the county chief.
Mr Oparanya said the Agriculture department will identify beneficiaries before the funds are disbursed.
“The department is collecting statistics and other details of the farmers to guide them on implementation of the programme,” said Mr Oparanya.
The county has allocated Sh15 million to buy a building belonging to the collapsed Mumias Outgrowers Savings and Credit Cooperative Society.