By Violet Auma
Western Kenya’s sugarcane farmers today celebrated a groundbreaking milestone as they received a Ksh 150 million bonus from Mumias Sugar Company, marking the first-ever bonus payment since the company’s establishment. The event, officiated by President William Ruto, symbolizes a turning point in the government’s commitment to reviving the sugar sector.
President Ruto emphasized that the bonus payment stems from an agreement between the government and the current investor, Sarrai group, which is associated with Kenyan business Sarbi Singh Rai. “I told them no government will pay employee salaries again. The company must pay farmers, employees, and provide bonuses,” he stated firmly.
Clarifying the source of the funds, Ruto assured stakeholders that the bonus originated from the company’s revenues, not government coffers. “We are not irrational to take money from the exchequer for farmers’ bonuses. The company must manage its finances—30% to repay loans, 30% as profit, and 30% as bonuses,” he said, addressing concerns raised by Mumias East MP Peter Salasya. Salasya had questioned the source of the funds, urging transparency and stakeholder involvement.
COTU boss Francis Atwoli defended the move, rhetorically asking, “If someone owes you and finally pays, does it matter where the money comes from?”
President Ruto affirmed that bonuses would be calculated based on the quantity of sugarcane supplied. He handed over a cheque for Ksh 150 million, announcing that the top farmer would receive over Ksh 500,000. “This will be an annual exercise to motivate farmers to plant sugarcane,” he declared, pledging to replicate the model across all sugar mills in the country, akin to bonuses given to tea and coffee farmers.
Revival of Farmers’ Interests
Ruto announced the revival of the Mumias Outgrowers Company Organization (MOCO) to safeguard farmers’ interests. Additionally, he reiterated plans to lease the remaining five sugar mills in Kenya, following the successful leasing of Mumias Sugar.
“Many mills collapsed due to poor leadership and corruption,” he said, praising the current investor’s professionalism. He highlighted that 90% of the Mumias Sugar nucleus farm is now under cane cultivation. “In 2024, we produced 832,000 tonnes of sugar, the highest since independence. We’ve expanded sugarcane farming to new areas, increasing cultivation by 42,000 acres last year alone. Our target is to add 200,000 acres for self-sufficiency.”
Support for Farmers
Agriculture Cabinet Secretary Mutahi Kagwe emphasized the critical role of farmers in Kenya’s economy, noting that over 8 million Kenyans benefit from sugarcane farming. Kagwe urged youth to consider agriculture as a viable career path amid high unemployment rates.
The government’s focus on subsidized farm inputs has bolstered production. Ruto revealed that fertilizer costs have been reduced from Ksh 6,000 to Ksh 2,500. “This year, we procured 5 million bags of fertilizer, including 1 million specifically for sugarcane farmers,” he noted.
Ruto set ambitious goals for the sector: “Our average yield was 18 tonnes per acre; last year, it rose to 27 tonnes. Our target is 35 tonnes per acre. By 2027, we aim to make Kenya a sugar-exporting nation.”
Legislation and Accountability
Ruto instructed CS Kagwe to expedite the passage of sugar sector regulations in Parliament, emphasizing the importance of accountability and adherence to zoning rules. Speaker Moses Wetangula and CS Wycliffe Oparanya echoed the call for integrity in the sector. “Rogue players have no place here. We must respect zoning agreements to guarantee raw material availability for investors,” Oparanya asserted.
The President promised to revisit Mumias Sugar within three months to assess progress, including the revival of its ethanol and co-generation plants. Kakamega Governor Fernandes Barasa and Senator Boni Khalwale urged the government to clear the Ksh 1.5 billion arrears owed to former Mumias Sugar employees.
National Development Goals
Deputy President Kithure Kindiki reiterated Kenya’s ambition to become a first-world country through industrialization. “Kenya Kwanza’s investments in agriculture, the blue economy, and mining are transformative,” he said.
Prime Cabinet Secretary Musalia Mudavadi stressed the need for a conducive environment for investors, denouncing corruption as a key factor in the sector’s decline. “Corruption is expensive and has brought this company down,” he remarked.
With a focus on transparency, innovation, and stakeholder collaboration, the government aims to rejuvenate Kenya’s sugar industry, ensuring prosperity for farmers and sustainability for the sector.
