Chemelil Sugar Company has made a fresh bailout plea to finance settling of salary arrears accumulated over the last 20 months and clear tax obligations.
Factory Manager Gabriel Nyangweso says the miller faces inefficiencies in production due to ageing machinery and lack of maintenance.
The Sugar Company has been facing challenges financing its operations in what Nyangweso says over the 12 years, the factory has been serviced only five times yet it is supposed to be serviced every year.
He says this has affected the company’s production capacity and ability to meet obligations which include paying farmers for cane supply and workers.
Early this year, the government released 1.9 billion shillings to settle outstanding payments to farmers for sugarcane deliveries to public millers.
However, some farmers who supply cane to Chemelil Sugar say they are yet to be paid. The issue of privatization of Chemelil Sugar also emerged during the farmer’s meeting in Chemelil.