Sugarcane farmers allied to the South Nyanza Sugar Company will be paid Sh526million arrears which management wants to push through their first profit in seven years.
The company’s management led by Managing Director Bernard Otieno they have pegged hope on payment by government.
“We last made over Sh2.5billion profit, with over a billion in hard cash,” he said in a period from 2009 through 2012 financial years.
The downside started when two private millers, Mara Sugar and Sukari Industries started operation in 2012 and went into sugarcane poaching where Sony has lost over Sh3bilion ever since.
“Ever since they started operation, we have losing sugarcane as the prime raw material to poaching,” Otieno said.
He said in seven months last year alone, Sony lost 2,300 hectares of sugarcane which translates to Sh230million.
Following President Uhuru Kenyatta directive to pay sugarcane farmers pending bills, the company helped in vetting beneficiaries and wait for payment.
Already the company management is position themselves by slotting month long plant maintenance slotted for next month during the heavy rains period.
Otieno said after the maintenance the effectiveness of the extraction unit will push through more output for the same raw material to add Sh230million more.
“This will translate into the extra income per month on more sugar we will produce by better and more improve miller after the maintainence,” he said.
Among the key machines in maintenance drive will be reinforcing the loading crane to spur “availability and reliability.”
He called on the public to turn out in large numbers in the public debate on the sector on ventilate on payment, privatization drive and how best to boost the sector.