Muhoroni Sugar Corruption Scandal - Sends Workers Home On Paid Leave

Muhoroni Sugar Factory is on the verge of collapse due to corruption and incompetent management, former Kisumu mayor Sam Okello has said.

Okello said farmers are yet to receive payment for cane delivered for over five months. Farmers are owed more than Sh300 million

https://www.standardmedia.co.ke/ktnnews/video/2000155768/-muhoroni-sugar-company-sends-workers-on-paid-leave-ktn-news-centre

This Comesa deadline of February 2019 is fast approaching.Local sugar will to exist amidst the alternatives. Anybody still planting sugar is wasting time. We will not be competitive with cheap sugar flowing from Sudan, Malawi and Brazil

just asking for us NAIROBIANS. "Sugar is planted?

Nî tondû how is this sugar produced?

Why is it not produced here the same way? If we’re not able, why don’t the government allow the import of the cheaper stuff?

Huu upuzi wa maize and sugar subsidies in my opinion ni kama kuziba shimo la panya kwa mkate.

We can not be competitive if we allow corruption to reign over integrity. Corruption working in unison with incompetence raises the cost of production making us extremely uncompetitive.

You don’t say! And here I thought it’s because we used rusty farming implements.

with sugar its more about economies of scale.Its much cheaper to grow a Kilo of sugar in Sudan and Malawi and more efficient given the type of sugargrown.

Rusty machinery is the visible sign of the underlying rot. How is it possible to replace rusty machinery, if you already pocketed the money, it can only be one or the other.

And yet the geniuses are yet to figure this.

Kenya is one of the most expensive places to have manufacturing and processing industries, thanks mostly to high costs spurred on by high (corruptly inflated) power costs. As if that was not enough, add high taxation and far off countries easily beat our industries competitively.

Since time immemorial, Kenya has been requesting for extensions every time that deadline passes. I bet they’ll request for another one come Feb 2019.

The extensions will last forever. Smuggling sugar at low prices then packaging them and selling in Kenyan sugar packets at extremely high prices is very lucrative to the cartels

Lakini mimi kitu hushindwa ni hii. Sukari itoke Brazil, ilipiwe all those levies, ilipiwe meli, ilipiwe hongo za smuggling, ilipiwe transport kutoka whichever port, ilipiwe warehouse, ilipiwe packaging, na bado ikue cheaper?! How now?

Muhoroni collapsed eons ago ! Its assets were looted and whatever left is rotting and/or rusting away.
Saving grace is the nucleus and housing estates were not plundered and it had a contract to supply sugar to all G.o.K hospitals and prisons.

Hapo kwa payment unakuwa mjanja kama mtu wa NCPB…use a large outgrower to deliver your cane i.e. make a back door deal with company like Homa Lime who deliver 100+ Tonnes, so unapeleka 10T zako as part of Homa Lime delivery. Cheque inatoka after 7days, then cut yako unapewa “less administrative costs”

loot nation

How come West kenya and new private entrants like butali are always profitable? As far as I can remember, a private company like West kenya pay within 7 days of delivery and they have never delayed payment since they started operating. Same to butali. Is that they are in private hands?

All these sugar factories are on the death bed since the 90’s. Even former President Kibaki tried giving them billions to improve and got Comesa protection for their survival. However it still fails. Yes successive managements have stole but the underlining major problem is what make it hard to save them. Kenya grows sugarcane by natural rain feed that takes 18 months to grow from 1000’s of small scale farmers. Sudan, Mozambique grow sugarcane by irrigation, one large scale government owned land that matures every six months. We can’t compete on that huge economy of scale. We have been producing sugarcane in the most inefficient, expensive and slowest way possible. Our factory machinery are obsolete and in debt. This year Gok won its 3 years court case that finally allows it to privatise all sugar millers as one entity. That’s the only way it can be attractive to investors. It also ends the sugar poaching menace. Gok will sell 50% stake to investors who must demonstrate they own modern sugar plants globally. 20% will be taken up by local farmers fully, sacco or partnership with counties. 25% will go to Treasury and 5% to workers. Whatever amount is realized from the sale, will go first to pay off farmers and debt owed to the plants. Investors must provide proof of funding to invest in replacing the entire plant and demonstrate a good operational business plan.

That said, western and north rift should just shift to horticulture, legumes, fruits and vegetables. You can’t grow sugarcane or maize on rain under small scale farming. Sugarcane and Maize farming should shift irrigation either in the north or coast region.

Bureaucracy
Example: South Nyanza (Sony) Sugar Co. ltd. created by an act of Parliament in 1978 so basically it is a state corporation.
How it works;
[ol]
[li]Sony draws up a yearly budget and submits it to Min. of Agriculture.[/li][li]Ministry forwards this report to Treasury for approval and factoring for annual budgeting.[/li][li]Monies are released from Treasury to parent ministry…sarakasi inaanza hapa ![/li][li]Farmers deliver cane to sony factory for milling & marketing.[/li][li]Sugar is sold & monies are banked but since it is a state corporation monies to be paid to farmers had already been budgeted in step 1 above.[/li][li]Now employees of sony or govt owned sugar companies collude to requisition funds under the guise of paying farmers/suppliers.[/li][li]Employees siphon funds then go back and lie to farmers that serikali haijatoa pesa ya wakulima.[/li][li]Farmers opt to supply private sugar companies that operate their own expense A/c which can incur/pay promptly.[/li][li]Sony wakes up one day and realises it no longer has cane to mill & market so it can’t remit money to the govt.[/li][li]Govt realises sony is a loss making entity and does not bother to channel money towards it[/li][/ol]
So that’s how govt owned corporations collapse.

G.o.K had grossly undervalued these factories. We re-did valuation for Mumias, Miwani and Nzoia. Ulikuwa unapigiwa simu na silly Luo/Luhya Mps wanakupatia sums to return !

halafu sunday wanakimbia kwa matanga na political rally kusema Ruto anataka kumaliza watu wao kwa kuangusha viwanda vyao

Alas , what about the ferkn govt employees working on they sugar mill, don’t you think they are making themselves jobless …I think they are making their own deathbed