BUSINESS

Kenya’s Largest Sugar Miller Halts Operations Over Fuel Shortage

Sugar milling has become one of the biggest casualties of the fuel crisis currently facing Kenya

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sugar millers hit by fuel shortage
Harvesting has narrowed down to farmers who had already started.
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West Kenya Sugar Company has been hard hit by a fuel shortage, forcing it to halt operations. The company, also Kenya’s largest sugar miller, has suspended harvesting and lifting of sugarcane, its main raw material mostly supplied by privately contracted farmers, citing a “shortage of diesel” until further notice.

The company’s officials have instructed farmers with permits to stop harvesting sugarcane until the situation is addressed. “I have two permits to start harvesting tomorrow (22nd April) but I was called this morning that I should not harvest for now,” said Mr Simon Burudi, a farmer based in Muting’ong’0 village, just a stone’s throw from West Kenya, where a plume of dark smoke can be seen, perhaps an indication of the mood inside the factory.

The company has not indicated when harvesting and lifting would resume, stating only that farmers will be updated on the situation.

Kenya has been experiencing a fuel shortage in the last three weeks or so, caused partly by the war in Iran and local procurement mishaps. A spot-check showed few tractors on the road, confirmation that harvesting has been left to those who had already started. “We are lifting only sugarcane that had been harvested before this communication was released,” said an official of West, who requested not to be named for he is not authorised to speak on behalf of the company. “But we expected fuel to come in anytime from Wednesday.”

> Gain For Farmers as Government Raises the Price of Sugarcane 

It was not immediately clear whether the order affects all factories under Rai Group, which runs West Kenya, Naitiri Sugar in Bungoma, Kibos in Kisumu, and Olepito in Busia. The official said each subsidiary will release its own schedule depending on its diesel capacity. Its rival, Butali Sugar Mills, has not made any announcement on the matter.

Sugar milling has become one of the biggest casualties of the fuel crisis currently facing Kenya, with prices having been increased by over 20% last week. Most petrol stations in the Kabras region where West Kenya Sugar operates have fuel, an indication that the factory’s reserves could have run out or the management is simply using the situation to take a breather.

A halt in operations is likely to hit farmers hard, as schools are about to reopen and in the middle on the planting season when expenses are markedly high. Also hit are beneficiaries of the sugar cane value-chain, including drivers, loaders and cane cutters. Businesses that rely on West Kenya as a catchment for customers are also likely to slow down.

“Let’s hope it won’t take too long,” said Vivian Wambani, a high school teacher who lives in Malava, where cane farming is the main economic activity. “Lack of jobs will lead to crime. These tractors keep young men busy and earning.”

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Written by
KALU MENGO -

Kalu Mengo is a Senior Reporter With Business Today. Email: [email protected]

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