Nzoia Sugar Company has temporarily shut down due to a looming cane shortage and piling debts that have hampered operations.
The company’s public relations manager Gilbert Awino, said that they had not produced any sugar in the past three works, adding that the firm lacks adequate funds for maintenance.
“We don’t have cane both in our nucleus and out-grower farms. We hope the situation will be better with time,” he said.
Awino said the company is also awaiting the Sh300 million cash bailout promised by the national government.
In March this year, the acting Managing Director Michael Kulundu revealed that Sugarcane poaching and the ongoing drought were likely to bring the Company on its knees.
“We are struggling, we don’t have mature cane, and all the cane we developed were poached by our neighbouring firms or dried due to the recent drought that hit the country. The neighbouring farmers requested us to crush their cane then we pay them weekly under their terms,” Kulundu said then.
Nzoia Sugar is expected to resume operations in August.