Kenya: Cheques issued by sugar mill rejected by banks

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Fresh row emerged between the sugarcane farmers and the struggling state-owned miller Muhoroni Sugar factory as the mill allegedly issued them bad cheques.

The farmers stated that when they went to the bank to encash money, the banks dishonoured the cheques. Farmers allege sugar mill owes millions of shillings.

According to the reports, The company is struggling to clear its debts and is crushing barely 20 per cent of its capacity due to bad equipment.

Cane growers alleged they had breathed relief two weeks ago when the company declared to clear their dues but it was only assurance and the whole process was a mockery.

Charles Atyang, Chairman of Kenya Sugarcane Growers Association said, “We are surprised that all the cheques issued by the company are rejected by the bank. We agree that the mill is facing a financial crisis but cannot accept the delay in payments when we sent sugarcane for crushing without any condition to the company.”

The farmers have threatened to stop cane supply to the miller and have appealed the government to privatise the mill to help them get out of trouble.

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