Webuye West MP Dan Wanyama has castigated the Jubilee administration for failing to pay farmers for cane delivered to the Nzoia Sugar Company.
He said thousands of farmers contracted by the milling firm face financial difficulties due to non-payment of their dues.
The lawmaker dismissed a recent visit by Defense Cabinet Secretary Eugene Wamalwa to the factory to oversee the start of a three-month maintenance process, saying he should instead have pushed for the release of funds to farmers.
“How does a whole CS come to launch maintenance of the factory when farmers have not received their money?” posed Mr Wanyama.
Engineers at the milling section of the factory, where new machines are being installed.
His remarks came as farmers who have contracts with the company threatened to move to court to demand payment.
They have issued a seven-day ultimatum to the government to release the money or face legal action.
”The government released Sh500 million but remained with a balance of Sh430 million, which is going to be accredited soon to your accounts” said CS Wamalwa when he visited the factory earlier this month.
But farmers, led by Jack Munialo, said they have been waiting for 14 months for payment.
He asked the government to release the dues with interest after holding the cash for many years.
”They cannot withhold our money for all that time and fail to pay interest ”Mr Munialo noted.
A farmer who supplies cane to Nzoia sugar factory, Jack Munialo speaks to journalists at the factory.
The government released Sh500 million last year to pay farmers’ arrears and for machine maintenance and promised to clear the balance, but they have not been paid.
Nzoia Sugar acting Managing Director Chrispinus Ogutu told the Nation that at the time the government paid Sh284 million, the farmers’ arrears stood at Sh734 million.
“A decision was made to pay the 14,000 farmers a pro-rated percentage of 38.6. A balance of Sh450 million, accounting for 61.4 percent, is still outstanding for cane deliveries made up to October 15, 2021,” he said.
Current salary arrears for employees stand at Sh707 million, while unremitted deductions including for cooperative societies, banks and PAYE amount to Sh1.5 billion. BY DAILY NATION