Chemilil Sugar Company has injected Sh750 million into the pockets of farmers since a private investor took over its operations in May last year.
Outlining the milestones made in the last year, Deputy General Manager Michael Wanjala said apart from the huge amount of money released into the local economy through farmers and workers, the company is also modernising its operation.
He said that they have crushed approximately 110,000 tons of cane while continuing to improve the factory and facilities through targeted maintenance and phasing out of old equipment and replacing them with modern and more efficient ones.
“Initially we had thought we would close the plant for maybe one and a half years to bring it to par before we start, but the government urged us to start production almost immediately,” he said, lauding the move by the government to lease out the four state-owned factories to private investors.
“What we have brought in is the expertise; what we have brought in is the investment which then transforms the technology so that we are able to run the factory in a more efficient way and in a more productive way,” Wanjala said.
Chemilil Sugar Company Deputy General Manager Michael Wanjala lauded the strategic move by President William Ruto’s administration to lease out four state-owned sugar factories.
Apart from constantly paying farmers on a weekly basis for their deliveries, Wanjala said that the workers numbering approximately 500 are now getting their salaries and other benefits on time.
He added that SHA, NSSF and other statutory deductions are also being delivered within the stipulated timelines. “The government is also benefiting because I have to pay taxes required of me at the end of every month,” he said.
According to him, the move to lease out Chemilil, Sony, Muhoroni and Nzoia Sugar Companies was a masterstroke by President William Ruto’s administration.
Apart from boosting business in the sugar belt, Wanjala said that the resumption of operations opens up job opportunities, improves livelihoods and also significantly cuts sugar imports, which is good for the economy in the long run.
“We also have the nucleus, and we have consistently invested in it. We have continued to invest in terms of the labour that helps us keep the nucleus going. Yes, we have done well and we continue to do well,” he asserted.
The resumption of operations at Chemilil Sugar Company has renewed hopes for socioeconomic growth in the Sugar Belt
Although the company has invested heavily in maintenance, there is still a lot to be done considering that the establishment was founded more than 60 years ago, something that Wanjala alluded to.
“The factory was in such a sorry state that despite our continued and very determined investment, we are now just at about 50 per cent of the rated capacity,” he said, adding that the factory boasts of a milling capacity of 2,500 tonnes of cane per day.
“We are playing in the range of about 1,250 to 1,300 a day. So, we are not there yet but we are continuing to make investments, simultaneously also investing in cane so that in the medium term we shall be able to run the factory optimally,” he added.
