Muhoroni sugarcane farmers are demanding a payment of estimated Sh250 million from the debt-ridden sugar miller even as the management appeals for time to source the funds.
The growers who have stopped delivering their cane to the factory called on the government to sack the joint receiver managers for allegedly abandoning their duties by staying out of office.
“The company has failed to pay both farmers and workers for the last one year, the current receiver managers Francis Ooko and Harun Kirui have not been seen in the factory for the last three months and are believed to have abandoned their work,” said Kenya Sugarcane Growers Association (Kesga) secretary-general Richard Ogendo.
However, Mr Ooko said he said he was involved in an accident while on duty and was given permission to do lighter duties as he recovers.
He said that the cash-strapped company is struggling to pay other overhead costs, including accrued taxe, salaries and retirement dues.
He added that among the State-owned sugar millers, it is only Muhoroni that has recently been able to pay its staff for two consecutive months and paid taxes amounting to Sh175 million.
The factory is operating at half capacity, achieving five tonnes of sugar per 100 tonnes of cane.
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