Leaders representing cane farmers from South Nyanza have raised an alarm over looming auction of South Nyanza Sugar Company (SONY) due to unpaid loan from the Cooperative Bank of Kenya.
Speaking at the company’s ground, the South Nyanza Sugar Cane Farmers’ Secretary General Argwings Adongo said that the company owes the bank a sum of more than Ksh 862 million as of July 2026.
He disclosed that the company was given a notice in July 2025, but the company never complied.
Adongo disclosed that, due to failure to pay the loan, the more than 4,000 acres of sugar nuclear estate stands to be auctioned, as claimed by the notification from the Cooperative Bank.
The bank had given a 40-day notification of sale of property to the Sugar Company, a notification dated July 14, 2026.
The proposed sale has sparked concern among farmers who fear the loss of more than 4,000 hectares of land that they consider critical to sugarcane production and livelihoods in the region.
“When Sony Sugar was being leased to the Busia Sugar Company Limited in 2025, the government was aware of any existing loans that were supposed to be settled before the leasing process,” he lamented.
He urged the government to settle the bill and ensure the company runs smoothly to benefit the Migori people, adding that the 40-day notification of sale of property elapses on August 20, 2026.
John Omolo, Chairperson of the sugarcane farmers from South Nyanza Sugar Company, said that the nuclear land was donated by the residents of Awendo way back in the 70s to pave the way for the company to start milling.
“Sony is our property and sits on our land, and it is equally important to safeguard its existence by taking good care of its lands and any other property,” said Omollo.
He said the possible sale of the nucleus Estate would have consequences beyond Sony Sugar because of the land’s importance to the surrounding community and sugarcane farmers.
The official said that the company can look for other resources to settle the bill as well as involve the national government to offset the debts for the future existence of the South Nyanza Sugar Company.
Odondi said that the company ignored the notice issued by the bank in August 2025 and wondered why the company did not commit itself to offset the loan.
“Our farmers are against the sale of any property belonging to South Nyanza Sugar Company, especially the nuclear plantation that was donated by their forefathers,” said Odondi.
The official, however, appealed to the management of the Sony Sugar Company to give the stakeholders proper information on the same.
He also called upon the county leadership to step in and help resolve the matter to save the company from unnecessary debts.
