Category Archives: Sugar

Kenya: SONYSUGAR is on the turn around to become a vibrant economic enterprise in the greater Southern Nynzan region

Writes Leo Odera omolo In Awendo Town.

The Awendo-based white sugar manufacturing SONYSUGAR has envisaged tentative plans to turn itself as one of the most vibrant sugar companies in Nyanza region.

The company has envisaged a plan to diversify its production and use of its by production to produce ethanol from its molasses and also to produce power using its bagasse.

When all these come to full scale production, it is hoped the company would be the most stable in the region.

The company’s managing director Paul Odolla said during an exclusive interview with this writer at his Awendo factory office.

Odolla said the company was satisfied with the performance of its close to 2400 employees and workers. It is also pleased with the cooperation and the existing cordial relations with its close to 25,000 cane growers providing it with row materials. It has a similar number of cane farmers covering districts of Rongo Gucha, Trans-Mara, Kuria, Ndhiwa, Migori and Awendo.

The company, said Mr Odolla, is playing significant role in the economic growth of the larger Southern Nyanza Region.

Despite all these, SONYSUGAR, is still facing other hurdles such as the impending privatisation programme, stiff competition in both sales and row cane expected from the up-coming sugar manufacturing factories within its neighborhood. One such firm is the Sukari Industries now under construction at Paw-Otange in Ndhiwa district. Another factory is coming up in the Trans-mara district.

There are tentative programme for another project, a medium sized sugar factory under the proposal to be established at Opapo also in the neighbouring Ndhiwa district.The plant has yet to take of and is stillin the drawing board.

Odolla, however, blamed the local leaders for not sensitizing cane growers and residents of the region about the impending privatisation of the company,which they ought to have done by now.The farmers are entitled to know the effect of such scheme, its benefits and the percentage that should be allocated to the farmers and the investors respectively in order to pave the way for smooth transition from a public to a private company.

Other hurdles is the Comesa deadline, which required the local sugar companies to reduce the cost of production drastically so that they could compete effectively with sugar produced by Comesa countries and the share of the market.

He said owing to the commitment of both the workers and the cane growers within Awendo and its environs, the company has realized stability enabling it to play its pivotal role in the economic growth of the region.

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KENYA: SUGAR MEETING TURNS ROWDY

BY JEFF OTIENO

Kericho District Commissioner Samwel Njora was heckled and almost confronted by a group of enraged farmers of SOIN Zone when he tried to impress upon them to take canes to Government owned millers- Chemelil and Muhoroni factories.

The DC who had convened the meeting to bring harmony, following a recent standoff pitting security agents and farmers who were ferrying their canes to other favourite millers instead of the government preferred (Chemelil and Muhoroni) got a rude shock of his life.

It took a quick intervention of former cabinet minister Kipngeno Arap Ngeny and local councilors to cool the flaring tempers before the meeting could proceed.

After two hour standoff the meeting kicked off with speaker after speaker castigating the apparently confused and indecisive D.C for being arrogant and partisan in resolving the ragging Zonal dispute bedeviling the rival millers Kibos, moribund Muhoroni and Chemelil

The two millers have castigated Kibos Sugar and Allied Workers Company Ltd for encroaching in their zones.

Kibos pays a whopping Kshs.3,500 per tonne weekly, Muhoroni pays Kshs. 3,150 while Chemelil pay Kshs. 3,100 per tonne. And again to angle themselves well to farmers, Kibos has installed another waybridge to salvage the farmers neck from the rigours of transport and to also avert spillage in Awasi Township.

Resilient Kibos has further installed a waybridge in Kibigori Nandi County which is nearing completion and will start operating in early July.

“ Bwana DC this is a liberalized market and there’s a new world order how dare are you to coerse us to take our canes to your favourite outfits” Councilor Balala from Chemase thundered a mid applause from the agitated crowd.

Kenya Sugar Board Directors Nicholas Oricho and David Kodongo whose areas are marooned by the zonal feuds and were also present took issue with the D.C. for being partisan in solving the prevailing wrangles.

Mr. Njora who could be seen sweating and unsettled during the three hours volatile period ultimately apologized to the crowd and said he was misled by his feelers who dint mention.

END

Kenya: ODM leaders in Western Kenya told to stop wrangling abut Counties’ headquarters

Reports Leo Odera Omolo In Kisumu City.

The Orange Democratic Movement {ODM} leaders in Western Kenya regions have been urged to stop petty agitation regarding the site and locations of the new counties and to devote their valuable time in campaigning for the party leader Raila Amolo Odinga’s presidential ambition.

These sentiments were expressed early this week by the ODM Youth Coordinator Hilary Ochieng’ Alila to reach the consensus that Counties headquarters should remain where the offices of the existing county Councils are located.

Alila gave the example of the Gusii County, which he said should remain in Kisii Town, the same with Kericho and Bomet Counties, which should remain in the present premises of the County Councils for the Kipsigis region.

In Luo Nyanza, Alila said,”There are four Counties, namely Siaya, Kisumu, Homa-Bay and Migori. The offices of these institutions should remain where the Counties Council offices are presently located. Therefore there is no point for the party leaders to squander much time over new sites and location where the new headquarters should be.

The status quo of these institutions should remain unchanged, for example, the Siaya County should remain in Siaya town, Kisumu the same, Homa-Bay the same and Migori in Migori town.”

The same should apply to new Counties in Western Province and some parts of the North Rift.”These petty argument could divert the attention of party members and leaders from the heavy task which lies ahead, and that is to campaign and ensure that the party leader Raila Odinga win the next presidential election with an overwhelming majority of votes.

In an exclusive interview with this writer, Alila told the ODM members, who will be taking part in the next months party grass root election, to do so with open eyes to guard against possible infiltration by moles and agent provocateurs from the competing political parties.”Party members should ensure they vote only to the genuine and dedicated party leaders.”

He urged the party leadership to extend their hands of support, particularly the MPs from the region, which have turned hostile, but were previously safe in the hands of ODM. Politics change itself is like a clock, but we must give our support to those who have remained steadfast and whose loyalty to the party leader Raila Odinga is unanimous and not questionable. One of these MPs are the likes of Franklin Bett {Buret}, Dr Joyce Laboso {Sotik}, Magerer Lang’at {Kipkellion}, Musa Sirma {Nominated} and others where disgruntled MPs and dissidents have been poisoning the air with empty political slogans.

When told that the former ODM national treasurer and former South Mugirango MP, Omingo Magara, was last weekend seen in Kisumu as one of the party rebels who accompanied the suspended Higher Education Minister, William Ruto, in a triumphed entry into Kisumu City, Alila scoffed it off dismissing the former legislator as a dissatisfied man and a political chameleon.”Magara departure from ODM is a good rident.It has since strengthened the party which is now stronger than ever before in the Gusii region.

Speaking about the Nandi region, Alila said that KANU regime had milked the area down to its knees by killing the price of agricultural products, KCC and other financial outlets for the people of the area. But an ODM government would resuscitate the economies of those regions,

It will work for a better deal for the sugar cane growers in Luo-Nyanza, tea and coffee growers in Gusii and some parts of the South and North Rift regions. Milk producers would be given priority. The same will apply to the maize producers and other cash crops.

Alila predicted an overwhelming victory for ODM in 2012, and appealed to its leaders at all levels to redouble their efforts to propel the party to victory next year. They, the leaders should be humble to all Kenyans including those with diverse ideas and those pursuing different political ideologies, all the time taking into account that “We are all Kenyans and must remain united in order to over come myriads of problems facing our beloved country.

Alila appealed to the rebel party MPs fro the Rift Valley Province to rescind their decision to ditch the party for the sake of their own self and their communities. The MPs, he said should not stoop low and allow them to be used like foreign mercenaries, but to think ahead about their communities and put in place the strategies of eradicating the abject poverty among Kenyans.

The youthful populist politician whose candidature for the Homa-Bay County has been greeted with great enthusiasms hail from Ndhiwa district appealed to Kenyan leaders to tackle all the merging political issues with sobriety, and to stop polarizing the air with venomous utterances, which could provoke tribal hatred.

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Kenya: The sugar industry is grappling with serious challenges such as high costs of inputs

Writes Leo Odera Omolo In Kisumu City

The sugar industry in Kenya is the source of livelihood to 6 million people and employed about 500,000, but it faces myriads of problems plus challenges including stiffest competition from low cost producers.

The industry is facing upward pressure on high crude oil prices and demand on bio-fuel. It significantly dependant on fossil fuel for raw cane transportation, development its key market such EU, Brazil and India.

However, the industry currently produces 68 per cent of Kenya’s domestic sugar requirements making the country a net importer of sugar.

These remarks were some of the few points outlined by the Acting Chief Executive Officer {CEO} of the Kenya Sugar Board Solomon Odera, when he addressed journalist during a breakfast session at a Kisumu Hotel.

The breakfast exchange with newsmen took place at the New Kisumu Hotel. It was also attended by member of the KSB, CEOs of sugar mills, top manager of the out-growers companies from eight existing sugar factories, transporters, Treasury representatives and the representatives of the corporation inspectorate.

He said the deficit in production is not imports from both COMESA and non-COMESA countries. The industry at a glance, he added, however, is significant to the nation’s economy.

Odera said the role of the KSB is regulatory, including facing the challenges, strategic direction, milestone the future, because the industry contributes 15 per cent to agricultural GDP and 15 per cent of the national GDP respectively. It provides employment to 500,000 workers along the entire value chain

“Economically, the industry reach and supports over 6 million Kenyans {which is approximately 16 per cent of the entire Kenyan population} depend directly or indirectly on the sugar sub-sector of the economy.”

In 2010, the number of raw cane growing farmers was estimated to be approximately 250,000delivering raw cane for processing to the 8 functioning mills, an average of 3,000 tons of cane per day. The area under cane plantation was about 154,198 hectares. The annual market value of sugar in 2009 was Kshs 6 billion up from Kshs 24.3 billion in 2004/2005.In this context, the industry saved the economy in an average of USD 325 million in foreign exchange.

The sugar industry contributes tax revenues to the Exchequer {VAT, corporate tax, personal income taxes and excise levies.

The industry contributed immensely towards infrastructure development through road construction, maintenance of bridges and social amenities such as education, health, sports and recreation facilities.

The industry, said Odera, also provides materials for other industries such as bio-gas {bagasse}, for power co-generation and molasses for wide range of industrial products including ethanol. It is intricately weaved into the rural economies of most area in Western and Nyanza and part of the Rift Valley Provinces.

Odera’s breakfast exchange with journalists was also attended by the CEOs of SONYSUGAR Paul Odolla, Chemelil Sugar Company Ltd Eng. Edwin Musebe, the co-receiver managers of Muhoroni Sugar Company and Miwani Sugar Mills Eng Martin Owiti and Mr Kipng’etich Bett.

Others in attendance were CEO of the out-growers companies from Chemelil, Muhoroni, West Kenya, Nzoia, Nandi, Miwani, Kibos, and SONYSUGAR. There were representative of the Treasury and the State Corporation Inspectorate Unit in the office of the president.

Other issues touched in the debate include privatization of the public owned sugar companies and its short and long term implications, employment of foreign workers in the industry, financial woes of the out-growers companies and their management, high costs of fuel and its implication in regards to the cost of sugar production, high cost of cane transportation.

Newsmen also queried about the excessive corruption that has been bedevilling the industry for a long time, and makes it referred to derogatorily as the “milking cows”, irregular harvesting of mature cane and many other myriad of problems.

The Acting KSB CEO explained that the production of sugar in the country has achieved 39 per cent of the growth. However, over the last ten years for example the figures show that 377,438 tons in 2001 to 523,052 tons in 2010, representing 23 per cent growth.

The KSB, said Odera is only a regulatory body of the country’s sugar industry. It was established by an Act if Parliament on 1st April 2002 under the Sugar Act of 2001. The board’s mandate is to regulate, develop and promote the Kenya sugar industry. It has a vision to be the best regulator of a world class multi-product sugar cane industry. It aims at facilitating a multi-product sugar cane industry that is efficient, diversified and globally competitive.

The KSB other mandate is to develop the industry through the internally generated funds under the Sugar Development Fund {SDF} with which it uses for funding the research, extension activities through the industry’s research wing {KESREF}. The KSB is also involved in sugar cane development {direct to individual farmers or through the out-grower institutions, infrastructure development and factory rehabilitation programs.

The regulatory body is financed through levy which is charged at 4 per cent of value of both locally manufactured and imported sugar. The Kenya Revenue Authority {KRA} collects the levy on behalf of the JKSB. This is shared out as follows; Development of infrastructure 0.29 per cent, factory rehabilitation 0.71 per cent, research 0.94 per cent, and the administration at 1.40 per cent brings u the total at 4 per cent.

The board’s other duties are that, being the link between the government and the industry, it lobbies fr favorable marketing conditions for the industry. The bard’s other responsibilities include that of ensuring up-coming sugar mills, licensing of importers and exporters, industry project approval and implementation. And also to ensure that the industry adheres to acceptable production and environmental standards, negotiating and ensuring compliance with sugar cane prices.

The industry is also faces other serious challenges, which include high cost of inputs, high taxation regime, diminishing land sizes, over reliance on rain-fed canes production, poor state of infrastructure, low adoption of new technologies, inadequate capital and high debt portfolio.

Odera said the KSB aims at making strategic direction to enhance the industry’s competitiveness through efficient farming and making operations and streamlined corporate governance.

Kenya at the moment has eight functioning sugar factories, but more are coming up in Ndhiwa and one in Trans-Mara district and also the one proposed for the coast and the rehabilitated Ramis Sugar at the coast could boost the number to about 12 in the near future.

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KENYA: BID TO TAKE MIWANI SUGAR THWARTED

BY JEFF OTIENO

A bid by a Kisumu based wealthy tycoon Padhal Harjeet Singh & sons to take over the ownership of the controversial and moribund Miwani Sugar Company Limited has hit a snag following a terse environmental assessment test report which has officially been disclosed.

In a letter dated 7th January 2011 ref Nema/EIA/5/2/614 the environmental authority rejects the bid by the transporter tycoon on grounds that the land in question is under contention.

The letter reads in part, “it’s important to note that the environmental assessment license is issued for a specific plot and hence the plot number has to be clearly stated and a copy of title deed attached as a proof of ownership.”

“The authority is therefore unable to process the environmental impact assessment license for the proposal development until the issue of land ownership is resolved and proof of the same submitted to the authority,” the letter continues.

It concludes in part by warning the investor that failure to respond within a period of 60 days for the date of the receipt of the same he will be expected to reapply.

“Kindly note that environmental impact assessment processing time stops running until the above issues are addressed,” the letter written by BM Langwen for the Director General concludes.

Padhal Harjeet and sons had budgeted Kshs. 11 million to set up the plant and were expected to crush 3,000 tonnes of cane per day.

They also intend to produce 23 mega watts of electricity with 18 megawatts being channeled to the national grid and the balance for its internal consumption.

The move by Padhal and sons has elicited outrage from local farmers who say the local transporter is using his high powered connections particularly from the Prime Ministers office to influence a take over through hook or crook yet they have no capacity or expertise on sugar.

The enraged farmers further took issue with a galaxy of consultants who gave clear bill of health to the transport tycoon without considering that there are contentious issues bedeviling the plant.

Padhal and sons were recently ejected from Chemelil Sugar for doing transport on alleged grounds that they were involved in fictitious dealings which were injurious to the sugar miller.

Miwani Sugar issue has braced endless court battles and at one time the said Padhal family were being accused by a clique of farmers for hiring goons to crowd court corridors in a bid to create imaginary impressions to the jurists.

At one time early last year the tycoon had to scamper for safety when the marauding goons demanded that their heckling fee along the court corridors be hiked thundering that they had under estimated the gigantic task involved.

Majority of farmers in that Muhoroni zone have of late sighed with relief following a vibrant policy by the Kibos Sugar and allied workers to pay farmers weekly; a move which has also impacted negatively to rival millers who now view them as “populist”.

It is interesting and imperative to note that the contentious miller is hardly 20 kilometers from Kibos Sugar and keen sugar industry players are watching with batted breath how the regulator the Kenya Sugar Board will react putting into consideration the sugar act.

END

Kenya: Campaign for Awendo’s New Parliamentary seat has started in earnest

Reports Leo Odera Omolo In Awendo Town.

The campaign in the race for who becomes the next MP in the newly created Awendo Parliamentary seat has started in earnest and prematurely even before the constituency is officially gazette.

The constituency is among the 80 or so additional new parliamentary constituencies recently created by the defunct Interim Boundary Commission, which was led by the former Vihiga MP Andrew Ligale.

If the parliament will eventually ratify and approve the 80 additional parliamentary seats as proposed by Ligale Commission, Awendo district will have its own constituency hived out of the existing Rongo constituency.

Awendo constituency will cover areas close to the Luo-Maasai border in parts of Trans-Mara district will also have a small portion of borderline between Gucha and Awendo district around Kitunja, Ochodororo and Nyamaiya areas. These border areas have always been volatile due to the intermittent skirmishes between the Luos and the Maasais and also between the Luos and the neighboring Abagusii people.

Apart from clashes experience a year ago between the Maasais and the Luos over a the land disputes a year ago, the border areas have remain calm and peaceful for sometime, and the credit should go the Provincial Administration, particularly the Rongo and Gucha District Commissioners, police and local politician for having maintained peace and harmony for the last 18 months.

The last three years ever since the general election in 2007 has seen peace and tranquility prevailing in Awendo Town, which previously was prone to incidents of grisly murders, thuggery and insecurity. Then killers who used to get away with their heinous action have since disappeared and peace and harmony has relatively return to this busy farming town, which is surrounded by sugar cane farms and also housing one of the leading sugar processing firms, the SONYSUGAR.

It as has been established that most of the thugs whose used to terrorize the population within Awendo Town and its environs were characters imported from far locations such as Karungu, Kaler and Kadem locations in Nyatike district by politicians who used them to intimidate or eliminate their potential political rivals whether real of imaginary opponents. Immediately the Rongo and Awendo D.Cs were posted in, the thugs quickly retreated and disappeared, perhaps going back to their original homes.

The agriculturally rich district of Awendo has its administrative headquarters in Awendo town and is covering half a dozen of administrative locations stretching from South Sakwa, Sakwa East, Sakwa North, Central Sakwa{1} and Central Sakwa {11}.

The former Energy and Sports Minister, George Mbogoh Ochillo-Ayacko, is among the leading contender in the new constituency. But there are half a dozens of other aspirants. They include the current chairman of the Awendo Twn Council, Johnson Omolo Owiro, Joseph Owuor is a Personal Assistant to the Ministe for Public Services Dalmas Otieno, Bob Odhiambo Ng’ura, Prof. Eric Otieno, Jude Ayieko, Dr Abwao. Joseph Opiyo the principal of Gamba Secondary School in Sakwa West. The name of the aspirants are expected to swell up within the next few months with more contestants expected to join the race.

In the same constituency, dagger is already drawn for the both Senate and governors position, with Sammy Onyango and Ezra Odondi Odhiambo declaring their interests in the position of governors, while the one time two terms MP for the larger Homa-Bay constituency Phrares Oluoch Kanindo is to battle for the Migori County Senate seat .All are from Awendo district.

However, the man to watch is the current chairman of Awendo Town Council, Councilor Johnson Omolo Owiro. Born in 1947, and the son of the late business magnate, Mzee Ismael Owiro Akoko, the man who is credited for having pioneered into business and single handedly developed Awendo to its present status, Coun Owirotook his early education at Ranjhira Primary School before moving to Luwala Intermediate School where he sat for his KAPE and later joined Pe-Hill Secondary School.

After leaving school he joined the Extra Mural Studies of the University of Nairobi University for two years. He was employed by the East African Industries in the sale section. He later moved to the SONYSUGAR Company where he was employed as a managerial staff in the factory. The Company later sponsored him to a two years study tour of India where he studied sugar production, processes, technology and quality control.

Owiro later ventured into sugar cane transport business as one of the contracted transporters for the SONYSUGAR,and soon after abandoning the transport business established his own Susana Academy school in Awendo Town. In 2005 he established Susana Secondary School also in Awendo town. In the primary section of the school he allowed close to 105 children from poor family free education while in the Secondary section of the same institution close to 30 students from poor families are receiving education for free.

In 2007 Coun.Owiro contested the election in Sakwa Central Ward and beat other seven aspirants with an overwhelming majority of votes on an ODM ticket. He was immediately elected the Chairman of the Council and was re-elected last year for the same position.

COUN. OWIRO’S PHOTOGRAPH

Coun Johnson Omolo Owiro, Parliamentary candidate for the Awendo seat

During his tenure of office as the chairman, the Council has constructed Kshs 52 million Awendo Bus Park on them main Kisii –Migori road. He had also initiated the installation of -the town’s street lights, sewerage, water and good road network within the busy town.

Coun.Owiro’s other successes include the recent purchase of school buses for Owiro Akoko Girls Secondary School. The construction of Komolo Rume Secondary School,Got Ogwamrondo dispensary, which is now complete and operational and other projects in Sakwa Central. He is a member of the majority sub-clan known as Jo-Kamiyawa, whose members are the majority in Central Sakwa area covering Awendo Town and SONYSUGAR.

The battle of the wit will therefore be between the former MP Ochillo Ayacko who hails from the neighboring Waware sub-location, but has good following in Sakwa North. Ayacko’s own sub-clan of Kadera and their cousins the Jo-Kakmasia are the majority of the inhabitants of Sakwa North. The former MP is expected to enjoy partly the support of Sakwa East residents but he will have to share the Waware votes with Prof.Erick Otieno, who also hails within his home turf

. But the voters in Awendo Town and SONYSUGAR workers who are so significant and substantial will be out of his reach and here is where Coun.Owiro stand to reap the benefit of his sweat for having turn the Awendo Town around with numerous, but visible development activities during his tenure of office at the Town Hall.

Coun. Owiro maintains the most illustrious background and credibility as an accessible apart from being a staunch member of the Seven Day Adventist Church, which is the dominant religion in the region to his advantage while Ayacko belongs to the Roman Catholic Church, whose following is insignificant I the region.

There is a popular call for change in political leadership in the region, which has for sometime been rotational between Dalmas Otieno and Ochilo Ayacko ever since 1997and Coun Owiro is expected to exploit this new euphoria to the maximum.

The agriculturally rich constituency borders Uriri to the South, Ndhiwa toi the West, Rongo to the North , South Mugirango to the Southeast and Kilgoris to the Southeast. Cattle rustling have been the common feature and the source of insecurity along the common borders with Trans-Mara and Gucha, districts, but of late the situation seemed to be relatively calm and peaceful with very few cases reported.

The economic feature of Awendo district is based on sugar cane farming. The area has one of the most fertile and arable land capable of producing coffee, tea, maize, bananas, vegetables, fruits, sorghum millets, sweet potatoes and other cash crops such as tobacco. The residents have recently ventured into graded dairy cattle, but still in small scale and most people still prefer traditional zebu cattle for beef and other purposes.

The area is served by the ultra-modern Kisii Migori highway, but there are also all weather feeder and access roads used by the nearby SONYSUGAR FACTORY for the transportation of row sugar cane from its more than 25,000 contracted out -grower cane farmers in seven districts of Migori, Awendo, Rongo, Gucha, Trans-Mara, Ndhiwa ,Kuria and Homa-Bay. There are similar numbers of non-contracted cane farmers within the Awendo sugar cane growing zones.

A common belief by the electorate is that it was during Coun.Owiro’s tenure as the chairman of Awendo Town Council which saw the arrival of the new District and the new extra parliamentary constituency oif Awendo and all are attributed to Owiro political dynamism and magnanimity and given his family background, Owiro is the man to watch in Awendo politics.

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Kenya: The construction of multi billion shillings road network in Nyanza is commendable

Writes Leo Odera Omolo.

RESIDENTS of Luo-Nyanza are overwhelmed with joy and highly appreciate the government initiative and efforts being put in the construction of ultra modern road network across the region.

The construction work on several important road links are currently taking places in various parts of Nyanza Province and are considered by the residents as significant steps for the development of the region, which for many years was marginalized by successive KANU regimes of the past.

Roads currently under the construction include the 25 kilometer Kendu-Bay-Homa-Bay road whose construction is already in advance stage and is expected to be opened before the end the year.

Another important road, which is currently under construction, is the 40 kilometer Homa-Bay Mbita road. The construction work is progressing well. This particular road is so important because it will link the rest of Kenya with the Ruma National Game Park,which is located at Lambwe Valley.

The road has some significance economically, because it will facilitate the easy transportation of fish from Mbita Point to the marketplaces on the mainland, and the one headed for processing in the various pants located in Kisumu, Homa-Bay and Nairobi, which are meant for export to the overseas markets.

Mbita Point is the largest fish landing beach in the region, where fresh fish from the smaller fishing islands scattered in Lake Victoria lands for eventual destination to market places in the main land. Other major fish landing beaches include Uhanya Beach in Bondo, Muhuru-Bay in Nyatike, Karungu-Bay in Nyatike, Nyandiwa and Kisegi in Gwassi, Misori and Luanda Kotieno in Rarieda and Usenge in Bondo.

Lack of fish preservation cold store is the other nightmare because fish is a perishable commodity, which must be transported outside to its market place as quickly as possible soon after it is land. Cold storage facilities are rare and could only be fond in Mbita Town.

The Homa-Bay -Mbita road will also open up the interior part of the Suba region, particularly the sceneries and pre-historic sites on the two islands of Rusinga and Mfangano, Gwassi Hills and Gembe areas.

The major repair work on the Katito-Kendu-Bay road was completed early last year. It now will give the motorist a quick drive between Nyakach and Karachuonyo and eventually to Homa-Bay.

There is however, the need to have the Oyugis –Kendu-Bay tarmacked in order to crown the region with a better road communication network.

Another road which needs to be constructed is the Muhuru-Bay Migori Town road. And the Oyugis-Rangwe road that could wind up at Rodi Kopany would be to the advantage of trade between Karungu-Bay and hinterland.

In Kisumu County all the access and feeder roads traversing the Nyando sugar belt are in pathetic conditions despite of the excess money being levied on sugar cane farmers by the Nyando County Council. It now takes a motorist to drive from Muhoroni Town via Chemelil Road close to three hours before reaching Kisumu due to the pathetic state f the road that runs through Miwani and Kibos cane growing zones.

Both Kisumu and Siaya Counties stand to benefit in getting major repair on Kisumu-Bondo-Usenge road, But the latest sensation, but significant development is the construction of the Ndori-Luanda Kotieno road, which now cut the travelling hours between Kisumu and Luanda Kotieno ferry by half. What remains to be done is the for the local entrepreneurs to construct good and tourist class hotels in strategic stop-over like Luanda Kotieno, Ndori and on both aside of the mainland and Rusinga Island at Mbita Point.

Motorists using the big four-wheel drives fuel guzzling vehicle could drive from Kisumu to Luanda –Kotieno in less than 50 minutes and catch up with the Mbita Ferry for another von voyage trip involving the crossing of the Nyanza Gulf from Rrieda to Mbita district. It traverses through the length of Uyoma peninsula, an area which has a lot in store for the tourists.

Plans are under the way for the planned construction of the Misori-Bondo-Siaya-Rang’ala road, which will be linked to the main Kisumu Busia Highway.

On realization of how important these road network for economic development of the region, local politicians have heaped a lot of praise to the coalition government and its principals. One such politician is Dr. Mark Matunga, an executive with Microsoft International who has declared his interest in the Homa-Bay County governor.

Matunga while thanking the Ministry of Roads urged the government to locate funds for the construction of Oyugis Rangwe – Rodi-Kopany road and also for the Oyugis-Kendu Bay road, adding that these two road links are so important for the Homa-Bay County because they are the best outlet for trades with the outside world.

Motorists using Kisumu Siaya road via Maseno and Luanda have also suggested that the repair work for the section of the road need to be carried out now. It is long over due.

Last year the Prime Minister Raila Odinga commissioned the short-but significantly important Ndori-Nyang’oma road, which will link visitors and tourists to the rural home of the Obama family in Alego Kogelo. The construction of the Obama cultural Center has commenced. The Center is being established in honor of the US President Barrack Obama who has the family root in the area.

There has been a big influx of visitors to the previously sleepy and dust village marker ever since the election of President Obama as the head of state in the US. Many visitors come there with the purpose of getting more information about President Obama ancestry and originality. Some of the development taking place in Siaya and its environs are likely to have a milestone changes in the pattern of development activities in the region, which also requires good roads communications.

The volume of trade in the region is also expected to be in the upward trend as the result of the improved road network. In the interior part of the region, the government revolving funds such as CDF and Road Maintenance funds are taking care of the feeder and access roads within the rural locations.

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leooderaomolo@yahoo.com

Kenya: WHY is Hon Otieno Kajwang’s sleeping on the jobs? He should kick foreign workers out of Kisumu Sugar factory

THE COMBINED TEAM OF KACC AND NSIS WHICH ARE CURRENTLY INVESTIGATING THE MESSES AND CORRUPTION AT NYAYO OFFICES SHOULD EXTEND THEIR WORK TO UP-COUNTRY.

Commentary By Leo Odera Omolo In Kisumu City.

The on-going investigations at the Nyayo headquarters of the Ministry of Immigration and Registration of Persons should be extended to Western Kenya to verify claims that a medium white sugar producing plant has engaged over 30 immigrant workers from India.

These workers, according to documents smuggled out of the facility by the frustrated Kenyan workers are engaged on petty and odd jobs which does not require the services of skilled workers worth sourcing from a foreign country, but which could be done by the local artisans.

The foreign workers are engaged on odd jobs such as welders, office time keeper, store men, store-keepers, cane yard clerks, boiler operators, boiler supervisors, weighbridge clerks and weighbridge supervisors, security, sales executives, hostel cook, account clerks, electrician, mechanics etc.

Surely, are we Kenyans really short of local skills in these fields to warrant the importation or sourcing of the same from foreign countries?.

Is it true that close to five decades ever since our country gained its political independence from our former colonial rulers and masters Great Britain in 1963, Kenya is still short of this category of workers to warrant their sourcing from India?

Why is Hon Gerald Otieno Kajwang’ sleeping on his job? It is even more shameful that some of the so-called skilled foreign workers are reported to be retiree and pensioners in their in country. More shame is the different and big gap between the salaries earned by these foreign workers in comparison to the salary scales of the local employee of the same firm.

According to the docents smuggled out of the facility by the seemingly frustrated local employees of the firm, the salary scales of these immigrant workers, are ranging from Kshs 40,000 to Kshs 105 per month. The foreign workers get their salaries neatly and are not subjected to the statutory and mandatory deductions such as NSSF and NHIF.

It is shamelessly discriminatory, because the highest paid local worker in this firm earns Kshs 45,000 per month and he is a boiler engineer. The rest of African staff are paid between Kshs 7,500 to Kshs 17,000 per month.

According to the company workforce roster made available to us, the firm has workforce of 344 employees including chairman, managing director, staff and the ordinary workers whose contribution to the NSSF is estimated to be around Kshs 137,600 per month. The immigrant workers are said to be exempted from these mandatory deductions.

I personally believes that after close to 50 years of independence, Kenya has trained sufficient number of manpower in excess of its industrial needs, therefore there is no point for the government of Kenya to allow the scarce jobs that are available for its citizens to be saturated by foreign workers.

Moreover, the Kisumu based Kibos Sugar and Allied Industries Ltd is medium sized plant that produces only 1500 tones of made sugar per day. And comparing it with the Mumias Sugar Company, which is arguably the largest and the most efficiently managed plant in this country that is producing close to 7000 tones of made sugar per day, and which is managed and manned by local Kenyan workers.

Other factories such as Sonysugar, Chemelil Sugar Company, Nzoia Sugar Company and Muhoroni Sugar Mills Company are producing slightly over 2000 and 2500 tones of made sugar per day, but all are manned by local skills. What is so special in the case of Kibos to warrant its importation of such a large number of foreign workers into this country?

What criteria is the Immigration Ministry using in determining what category of worker should be issued with the work permit to engage on employment in this country? Can the Minister Hon Otieno Kajwang’ explain this to us?.

We are informed that each time the immigration officials tried to intervene on this kind of scams, there are some elements of intervention from unnamed top government officials and politicians from the region. Are these people really genuinely working for their down trodden and distraught Kenyan workers who are openly being unfairly discriminated in their motherland?

At one time, we are told the junior immigration officials in the company of the police had stormed the facility and arrested quite a number of these alien workers, but they were promptly released within hours after such cases of intervention from above. Such things happens in our mid despite of the popular song coined by politicians that we are fighting the war against the scourge of poverty in other words “Poverty Eradication” Can we succeed in our endeavor whole such discriminatory policy is still being practiced in the country with impunity?

Let the government move with the into the Kibos facility with the snake speed and sort out the shameful messes there. KACC and NSIS as matter of utmost urgency should storm this facility as soon as possible and have the workers allegations investigated to its logical conclusion and perhaps have those foreigners workers kicked out.

Ends

leooderaomolo@yahoo.com

Kenya: What happened to the Kimwani ADC Farm in Songhor Mr Orengo Tell Us The Truth?

Investigative Report By Leo Odera Omolo In Kisumu City.

KENYANS do appreciate the concerted efforts being put by the government in ensuring that corruption is wiped out and consigned to the dustbins of history.

The same effort to retrieve public land illegally acquired either by companies, families, groups or individuals.

However, something is a miss somewhere. Nobody in the government or elsewhere seemed to be interested in knowing the fate of an ADC farm at Kimwani at Songhor, which sits on the foot of Nandi Escarpment below the Nandi hills.

The close to 10,000 acres of vast farm was previously owned by Mr Roderick Macleod, the younger brother of a one time the British Colonial Secretary Ian Macleod. The same white settler owned what was then known as JOLLY FARMERS HOTEL in Molo, which is located next to the Molo-Nakuru highway. The hotel was bought by the Kenya government in the late 1970s and it is now the GSU headquarters.

Large portion of the Kimwani ADC Farm was bought by the former Minister for Agriculture the late Dr. William Odongo Omamo, who was also one time Bondo MP and in his later years represented Muhoroni in the August House between 1997 and 2002. But before he succumbed to his death last year the late Omamo had sold most parts of his vast farm to the local communities and individuals.

The Agricultural Development Corporation {ADC} had the lion’s share and owned Kimwani ADC farm. Most part of the farm, which is believed to be in excesses of 6,000 acres, had planted sugar cane on it. The ADC had used the public funds in cultivating and planting all the sugar cane on the farm.

But all of a sudden, the former KANU regime in late 1980s and early 1990s moved with snake speed and appropriated the Kmwani ADC farm, and sub-divided it into 100 acres or more pieces, which were later allocated to the top government security chiefs, military men, permanent secretaries all of them Kalenjins. In fact the list of the names of the allotted with free land in Kimwani ADC farm reads like “Who is who in Kalenjin”.

In fact some of the luckiest individual who got over 100 acres of land with plant sugar cane ended up reaping off millions o shillings when their cane was harvested by the nearby Chemelil Sugar Company.

These are the same characters and politician who were in August this year were vehemently opposed to the new constitution dispensation, arguing that it will infringe into individuals land. The majority of people apart from the former nominated MP and Moi’s spanner boy Mzee Ezekiel Bargetuny and his family, who ended up with lion’s share, are to-day the same people who sitting in our Parliament. They are the same people who were so vocal about the land distribution and other shallow and hollow agitation and protracted argument about the clauses touching on the land as contained therein the new constitution.

A lot has been spoken about the illegal acquisition of large scale land or farms in this country, but everyone seemed to be keeping silent on what has happened to the Kimwani AD farm in Songhor on the border of Nyanza –Rift Valley Province.

In the same Songhor Valley, a top Kenya technocrat the late Mr Jonathan Owako had bought 1600 acres of a farm previously owned by a white settler. Owako had voluntarily sold half of his farm to groups of local land buying company owned by the local communities He built a magnificent farm house at an estimated cost of Kshs 6 million on the remaining 800 acres.

,But immediately after Mr Owako’s his death, a prominent Nandi politician {Name withheld} who was then one of the untouchable individuals during Moi’s administration, mobilized the Nandis who forcefully moved into Mr Owako’s property and settled on. His magnificent house was turned into a nursery and later a primary school for the new settler.

The unnamed Nandi politician himself slashed the largest portion of the land and converted into his own farm. The family has never been compensated for both the house and the farm, leave alone the close to twenty acres of mature cane and several patches of premature cane which were found on the farm. All were harvested and the money pocketed by the new farmers who had moved into the farm through mob justice.

Protracted legal court battles have followed and all ended up in judgments delivered in favor of the Owako family, but his sons could not move back and settled on the and due to constant threat of physical inhalation.

At one time, a court injunction was obtained by the late Owako’s family and served on Chemelil Sugar Company barring the facility from crushing any sugar cane illegally grown and harvested on the late Mr.Owako’s farm, but the company flagrantly ignored the court orders and continued harvesting sugar cane from Mr Owako’s farm with impunity. The matter is far from being resolved to-date.

Another Luo famer from Nyanza, the ate Mr Walter Fanuel Odede lost close to 2000 acres of prime agricultural land in the Songhor Valley in similar circumstances.

Odede one of the early nationalist and heroes of the struggle for independence who stayed in detention and restriction British colonial camp in the remote Northern Kenya for close to the duration of the State of Emergency was the father in-law of the late Tom Joseph Mboya another architect of political independence in this country.

The Minister for Land Hon James Aggrey Orengo is just sitting on the job. We have not heard him saying anything about the Kimwani ADC Farm in Songh0r, and yet those who had illegally acquired the land and apportioned it themselves are sitting with him in the 10th Parliament. The same people have become of the sung heroes and defenders of the so-called Kalenjin land, perhaps including the stolen ones as well.

In order to silent his critics, the retired President Moi moved to Muhoroni and slashed half of the Muhoroni Sugar Company nucleus estate far,, and after its sub-division distributed small pieces of farms to his political cronies, sycophants and then politically correct Luo surrogates.

TheJ0hnie come late and laxity ridden merry-making new Luo farmers immediately abandoned their ill-gotten farms immediately after harvesting the cane which was planted on land prepared and cultivated by the company at its own cost and minting millions of shillings and vanished away with their lined pockets.

Some of these farm, have since remained fallow, while most of Moi’s right hand men in Nyanza have since sold out or abandoned their ill-gotten farms. This list also read as “Who is who in Luo-Nyanza’ starting with former Permanent Secretaries, judges, administrators and political hirelings. These and many others are some of the impunity which the government must clean up the messes now.

Kenyans are sudden by the new culture of shifting blame on ethnics. Each time my fellow Luo committed a serious criminal offence, and once cornered. Such a person quickly jump into conclusion that “The Luos are being finished” or the subject matter is politically motivated” Witch-hunting are some of the cheapest English vocabulary commonly deployed by politicians in defense of criminal suspect.”

A case in point is the court cases in which the suspended Higher Education Minister is presently a suspect in a criminal case involving the alleged fraudulent sale of forest land at Ngog Hills. Without prejudice, the name if the Prime Minister Raila Odinga has been so common in the lips of the Kalenjin MPs as the person responsible for the Minister’s woes.

Such allegations against Raila Odinga defeats all the logics simply because the alleged offence which has brought Ruto and his other friends before a court of law were committed around 2001. During this period of time, Raila Odinga was nobody in the government of President Moi, but an opposition MP for Lang’ata involved with others in the clamor for the introduction of pluralism system of politics in Kenya. In all fairness, if the Prime Minister is the one instigating Ruto.s prosecution. Who else is responsible for the cases against the three others who are jointly accused with Ruto for the same offence? I am saying that Ruto and his colleagues are merely suspect, because the law says that the accused person becomes an offender after being proved guilty for an offence as charged. Therefore Ruto and his co-accused persons are merely suspects

But Kenya has gone a notch high of even discussing matters which clearly appeared to be even capable of being subjudice matters before the courts for political expediency.

Those blaming Raila Odinga on such issues are just exposing their political naivety and mediocrity. They should learn how to play politics of maturity, but not elementary like the road working gangs.

It is equally good for those who wished to ditch the ODM to do so on their own volition, but they must not hold the party leadership hostage.

If they are men enough, they should have left long ago without making too much fuss or trying to rock the boat from within. They must vacate their elective positions which they won on the ODM tickets and contest the same on other party tickets instead of hanging around making things difficult for the party’s loyal members.

Ruto himself need to tirade carefully because and strategize for his future otherwise he might soon find himself irrelevant even long before 2012.He need the like of Raila Odinga to propel his future presidential ambition, but if he goes on despising every colleague and nursing false notch that the Kalenjin votes are so numerous and can use for power bargain, this could be a pipe dream because he does not own the Kalennin nor is that community out for sale.

Ends

leooderaomolo@yahoo.com

Kenya: Rongo D.C. in a crisis security meeting in Awendom with the striking farmers and can cutters

Reports Leo Odera Omolo In Awendo Town

RONGO District Commissioner Arthur Osiya yesterday spent the best part of the afternoon in a crisis talks with the contracted and non-contracted sugar cane farmers within the Awendo sugar growing zones.

The meeting, which was held in Awendo town was part of the concerted effort by the Provincial Administration to resolve dispute between the farmers, cane cutters and other local stake holders, which has paralyzed the operations of SONYSUGAR company.

It was held on the fourth days of a stand off between the cane farmers, cutters and civic leaders in the region, which has paralyzed the operations of the Awendo based facility for the last four days.

Si fat the striking cane cutters are suspected to have been responsible for the destruction of the company property, which has seen close to 20 hectares of mature and immature cane torched by unknown arsonists . The strike by cane cutters has also drastically hampered the operations at the facility and grossly interfered with the normal cane delivery at the factory.

THE D.C’s meeting with farmers and cane cutter came in the wake of an impromptu meeting of the boards of directors of SONYSUGAR board of directors, which was called specifically to deliberate on various issues affecting the operations of the SONYSUGAR company, which is a wholly government owned facility.

The D.C. made passionate appeal to the resident of Awendo cane farming zone to protect the property of the SONYSUGAR Company saying that the firm was playing pivotal role in the economy of the Southern Nyanza region being the only single largest manufacturing industry.

The D.C reminded the residents of the area of the importance of keeping peace, law and order while the government is looking into their grievances. He promised that an important announcement would be made soon in connection to the farmers demand for high prices for their row cane.

But the seemingly enraged farmers told the D.C on his face that they were not comfortable with the SONYSUGAR Managing Director Paul O Odolla and wanted him fired.

While the meeting was going on some voice from the crowd were heard shouting that the recent renewal of the MD’s contract was done in a questionable manner. This confirms the rumors making the round within Awendo and its environs that it was done through the back door and that a discredited former civic leaders was used as conduit and hirelings brokering the deal through an influential political family which prevailed upon the Ministry to have the non-performing manager’s working contract renewed to the chagrins of the cane farmers and workers alike.

The lasted development came about following the sugar cane farmers pressing demand that the row cane price be increased from the current price of Kshs 2885 to Kshs 3185 per ton of row cane delivered to the facility. The farmers want the payment in arrears back-dated to July 2009 when the National Pricing Committee of the Kenya Sugar Board approved the increment. Other Millers had already adjusted to the new prices and paid out money in arrears to the cane growers except SONYDSUGAR.

During the impromptu security Baraza by the D.C there were no senior managers from the SONYSUGAR in attendance, through there were eight civic leaders from the Councils within the Awendo environs.

A prominent farmer from Rapogi zone Mr John Boby Awiti Otange who is also a prominent businessman in Nairobi commented that the time of employing top managers in public companies through godfathers are long gone with the arrival of the new constitution dispensation.

He said the SONYSUGAR company managers must be prepared to serve the interest of the sugar cane farmers above all because the farmers are their employers. Those who could not cooperate with the farmers must pack and go because there is no more room for employment through godfathers.

Some of the farmers interviewed said they would not hesitate to go public and expose the names of people involved in underhanded and corrupt deals, which are likely to cause sufferings to the poor cane farmers

SONYSUGAR has contracted close to 27,000 within the six administrative districts of Rongo, Homa-Bay,Uriri, Gucha, Trans-Mara, Migori and Kuria. There are also equal number of non-contracted farmers within the region who are also benefiting from the company.

Ends

leooderaomolo@yahoo.com

Kenya: Trouble is brewing at Awendo based SONYSUGAR company; several acres of cane goes up in smoke

Reports Leo Odera Omolo In Awendo Town.

Trouble is brewing in the Awendo-based SONYSUGAR following the firm’s refusal; to implement Trouble is brewing in the Awendo-based SONYSUGAR company over the firm’s refusal to implement the new cane price of from Kshs 2885 per ton to Kshs 3185 per ton as it was agreed last year by the price committee of the Kenya Sugar Board.

After the end of the rowdy meeting held at the green Stadium, Awendo, unknown people, suspected to be the striking cane cutters, set ablaze part of the nucleus estate destroying hundred of acres of mature sand still to mature cane plants

On Saturday, the cane hundreds of cane cutters who had joined the farmers also in demand that their wages be increased on line along with the cane prices staged a peaceful demonstration in Awendo town and its environ, but the management summoned the police to disperse them. Thereafter the cane cutter went on cane burning rampaged and close to 50 acres of mature and premature plant cane were torched.

Experts estimated the burnt cane to be worth over Kshs 30 millions. The farmers had also resolved in one of their numerous hard-hitting resolution that the SONYSUGAR managing director Mr Paul O. Odola be sacked with immediate effect as he has failed to offer effic9ient management of the facility.

By Sunday morning several cane farm blocks were still shouldering on fire. The management team had organized hundreds of workers who were seen battling to put off the raging fire. The chain cutter had vowed to paralyze the operations of SONYSUGAR until their grievances are attended to and addressed adequately.

The farmers accused the MD of being excessively arrogant and managing the facility like a white collar job, and yet this is farming facilities, which need its manager’s to be mobile and cultivating good rapport with the sugar cane farmers.

The new prices should have been affected from September last year, but SONYSIGUAR has flatly refused to implement the new prices as was agreed by both parties and the Kenya Sugar Board. Other sugar millers have already affected the new prices.

On Friday an attempt was made by the SONYSUGAR management to prevent hundreds of cane farmers and can cutters free access to the company Green Stadium for a public Baraza failed and the farmer forced their way into the facility by breaking the Stadium gates.

The company had posted a team of its security personnel armed with fierce dogs who had ringed the stadium, but they were overpowered by the waves of enraged farmers, forcing some of the guards to flee for their dear life as the situation turned chaotic add life threatening.

The management had posted the security personnel using fierce dogs to stop the farmers meeting. The meeting was called by the SONYSUGAR farmers’ zonal director Mr Zachary Okoth Obado. He was accompanied by KSB directors fro other factories who included Eng. Muhama Mukhwana [Mumias],Iweyi Mwambe [West Kenya], Nicholas Oricho {Chemelil,Kibos and Miwani zone],and KSB Treasurer Mr. Humprey Muyu and other leaders. Also in attendance was the chairman of Awendo Town Council Con.Johnson Omol Owiro and other local leaders

Obado told the meeting that the new price of raw cane per ton is not negotiable and that SONYSUGAR must be compelled to pay the correct prices of cane owing to the increased cost of production and maintenance of plant cane farms and other inputs.

Other complaints are that the MD does not relate well with the cane farmers. He sits in the office and he is inaccessible to the farmers. The KSB board members have also questioned the more and criteria in which the current SONYSUGAR MD’s contract was renewed by the government after the board had called for his immediate removal after the board had established that he is a non-performer.

Obado said that SONYSUGAR owed the cane farmers colossal amount of money to the tune of Kshs 250 million it owed them in arrears ever since July last year when the Pricing Committee, which is a national institution had recommended that the row cane prices be adjusted from Kshs 2885 to Kshs 3185 per ton.

But a spokesman of the company vehemently denied that the management had locked out the farmers from having public meeting at its facility. The organizers of the meeting had failed not consult the company that they intend to use the facility, which is currently under going renovation. Again those who gathered at the facilities were not genuine farmers but a bunch of thugs and highly alcohol intoxicated cane cutters who had their own hidden malice towards the company.

The spokesman claimed that Obado who has been sleeping on the jobs is facing election next March and perhaps wanted to use the current crisis which are merely artificial for the purpose of gaining popularity with the farmers. He is using the KSB vehicle in running around mobilizing thugs to embarrass the management.

The spokesman made it clear that SONYSUGAR is in the process of lodging complaints with the police against the KDB board chairman Mr Obado following the destruction of its property.

But Obado countered this by saying that he has repeatedly approached the MD advising him not to sit in the office, but to come out and conductdiualo9oguewith the farmers as the only way to have issues solved amicably, but the MD is adamant and preferred doing clerical work in the office instead of talking to the farmers.

A prominent farmer and a Nairobi based businessman Mr John Boby Awiti Otange, the whistle blower urged the government to overhaul the management of SONYSUGAR by sacking its current MD whom he accused of poor performance. Unless the government mover must faster the facility could close down within the next few months.

This is not the time for dictatorial tendencies, therefore anybody who cannot perform his duties well has no business sitting in the company office” Such managers should pack and go. It shameful that the management had deployed the services of fierce dogs against the farmers who0is virtually their employers at the facility.

Ends

leooderaomolo@yahoo.com

KENYA: SUGAR UNION DARES MUMIAS TO SACK WORKERS.

By Agwanda Powerman.

A MAJOR showdown looms between the giant Mumias Sugar Company and a workers union over plans by the miller to lay off some 200 employees.

The Kenya Union of Sugar Plantation Workers has said it will call for a major strike if the company goes ahead and dismisses the employees without proper reasons.

Its secretary general Francis Wangara said at his Kisumu office that the company should give proper reasons why it intends to sack the 200 unonisable stuff.

Wangara censured the chief executive of the company Evans Kidero for making unilateral decisions without consulting the union.

He said Kidero joined the company when the stuff force stood at 4,900 which he said has steadily reduced to 900 workers only.

Wangara said that would mean that the company will only have a stuff of 700 workers only.

He said it was illogical for Kidero to claim that some workers do not meet the minimum requirements of new roles.

Wangara said that the staff in question were interviewed and recruited based on qualifications.

He said the best thing that the company should have done was to retrain the stuff for the alleged new roles.

A letter dates September 14 and copied to Wangara which “Hope Fm” saw says in part that “In line with the Company’s objectives our business operations and determined by the staff compliment and skills requirement to support business skill and competency requirements for the supporting structures have been determined and as a result of this approximately 200 employees will be declared redundant as they do not meet the minimum requirement of the new roles”.

The letter goes ahead to state that “In accordance with the employment Act section 40(1)a we hereby provide one month notice prior to the implementation of this exercise. The exercise will be conducted in accordance with the current provisions of the collective bargaining agreement”

But Wangara said the intended move by the company is extremely repugnant and illegal.

He said the move is aimed at reducing the company’s wage bill with the key motivator being high profit margins.

Wangara who was visibly annoyed said that the company should withdraw the notice given to the workers within seven days failure to which it will act as notice to revert to industrial action immediately.

He said the union was not involved in any stuff rationalization exercise affecting its members at all.

He said that the union can not be party to any stuff compliments since it was not involved at all.

Wangara said the lives of permanent employees who are unionisable can not be sacrificed on at alter of profits.

The unionist said that the company intends to contract in areas where stuff have been sacked a move he said was unacceptable.

Wangara said that the so called new roles that the workers do not meet are quite alien to the union where the workers ascribe to.

ENDS

KENYA: SUGAR FACTORY BOSS ON FRAUD CHARGE.

By Agwanda Powerman.

The Director of Kibos Sugar Factory Limited (KSAIL) alongside five other suspects were arraigned in a Kisumu court, charged with fraudulently trying to acquire the collapsed Miwani Sugar Company and its land worth 2.32 billion shillings.

The charge stated that between May 21, 2007 and January 30, 2008 they conspired with intent to defraud Miwani Sugar Company of its property comprising the entire parcel of land, LR. NO. 7545/3 measuring 9,394 acres.

All the six accused persons appeared before Kisumu Chief Magistrate, Ezra Awino.

However, they all denied the charges through their Lawyer Richard Onsongo and were released on a bond of 3million shillings or cash bail of Ksh. 1 million each.

Also charged were two councilors from Nyando County Council, a Kisumu based Auctioneer, an advocate of the same Court and KSAIL Managing Director, Sukwinder Singh alias “Raju Patel” who owns the Kibos Sugar Factory.

The case is set for mentioning on September 27th, 2010.

Two other suspects in the case failed to appear before court and the Chief Magistrate; Awino ordered that they avail themselves before court tomorrow, failure to which a warrant of arrest will be issued against them.

End.

KENYA: SONY SUGAR FARMERS / EMPLOYEES CRY FOUL OVER CONTINUOUS FACTORY BREAKDOWN

Forwarded by Leo Odera Omolo

From: Vorster Forb Management

It is with deep regret that Sony Sugar farmers and employees are engulfed with mayhem of myriad problems occasioned by continuous factory breakdown and poor management communication systems.

The factory conducted maintenance in May/June 2010 at an average cost of Kes,600,000,000/- Reliable sources within the management highlighted that it was single sourced without going through the tender board committee. Factory maintenance project was finalised end of June 2010, and the factory began its operational activities beginning July 1, 2010. Surprisingly, after the maintenance it has had erratic operational existence and below its capacity which means that the maintenance was not adequately done by the contractor despite financing the same project for Kes.600,000,000/-

Contracted cane farmers are going beyond the contract period without seeking redress for breach of the contract from the management.
Last week Thursday, 19 August 2010, the factory ceased to operate whilst averagely 140,000 tonnage of canes valued Kes, 400,000,000/- were in the weigh bridge and some were in the loaded tractors queueing for off load. Going with the current drought being experienced in the lake region it is highly likely
that the sucrose ingredient of the harvested cane will melt at high rate leaving the cane with little or no tonnage. Consequently losses suffered will be
transferred to farmers.

Our question is who should be responsible for this mess? and what action does the Government take to this kind of person(s)? Why should factory maintenance valued Kes, 600,000,000/- be single sourced without going through the normal tender board committee as per Public Procurement Act.?

Unionizable employees have also highlighted their predicaments regarding negative attitude of top management of the company.
Going with global modernization in the operation of public Limited Companies such Sony Sugar Co. Ltd. We expect alot of flexibility,free interaction between top Management middle and other staff members for smooth continuity of work. Top management should create time to discuss problems faced by middle management and other staff. This will embrace good culture in work station which consequently increases
individual productivity as middle class will be enticed and feel that they are part and parcel of the system in place and motivation will be enhanced.

Cane growers are also concern about delay to increase cost price per tonne from Kes, 2,850/- to 3,181/- and demanding explanation on the same from management while this increment should have taken effect from September 2009. What does management say about it?

By BOB AWITI – ATANGE URIRI CONSTITUENCY
CONCERN STAKEHOLDER

Kenya: amorous top sugar company manager caught red handed in the act inside the firm’s office

Writes Leo Odera Omolo In Kisumu City.

WORKERS, managers, security guards and sugar cane farmers alike in one of the sugar milling companies based in the Nyanza sugar belt are still smarting from a shocking story of an amorous top manager who was recently caught red handed while making love to a female office worker on a table inside his office.

To many people, the story sounded like a tale on an Hollywood Movie. Is indeed, stranger than fiction, but it is a true story which is the public domain within the Nyanza Sugar belt and its environs. It happened on June 29th,2010 at about 9PM.

On the fateful evening of that day, the top manager in question behaved suspiciously and pretended that he was having a backlog of work in his office and stayed on as other staff went home for the evening. In the opposite office, a female office worker also stayed on to clear her desk as she was reported to be on his way out of the company on a voluntary retirement.

The incident has since been reported to the top management body of the company, which is currently considering the possibility of taking disciplinary action against the manager in question.

The amorous managed neatly closed the curtains of his office windows. And the female staff walked across from her office situated a few meters away from the managers office. They locked themselves inside, and quickly jumped on each other while laying on a large office table.

A fellow worker who was also working late in an adjoining office became suspicious when the light in the manager’s office went off. Peeping his eyes through an opening in the curtain, and this worker couldn’t believe what his eye had gone through. Not satisfied with what he had seen and in a state of shock, he dashed to his superior in an adjacent office and alerted him of what was going on the managers office.

The night supervisor in turn alerted night office guard, who came and knocked on the door.

According to an eye witness, when the manager opened his office and ushered in the female office worker, no sooner did the two lovers start fondling with each other in a compromised love position.

And all of a sudden they stripped themselves naked and turn the office table their love-nest!!The top manager aggressively jumped on his kill and the two were on it. It took the three workers for sometime before they could come to terms with reality, and deeply pondered what to do next. More security guards were called via their mobile phones, and the number had swollen to five. All these took place in quickly succession while the two secret lovers were madly making involved in love making game on the office table.

The night watchmen decided that enough is enough and the group knocked at the office door. The two lovers got the shock of their lifetime and at first hesitated from responding for those knocking. The office door was bolted from inside, and the two quickly stood up and started putting on their clothes in the darkness. The Manager is said to have put on his shirt upside down. But he quickly changed it after putting on the office ..

,Their dresses, which were then scattered all over the small executive office. The man put on a white shirt and white pares of trousers, while the female office workers put on a black skirt and white blouses, but forgotten to put on her bras. {Their names with held}t.

The lovers stormed out of the office and jumped on a double cabin Toyota four-wheel drive vehicle which was packed outside the office and drove off at the highest speed.

It was later learnt that the female workers, who has since relinquished his job is a widow who lose her husband a couple of year ago, while the manager is said to be still on the jobs, and putting up a thick skin despite the widely spread bad gossips about the incident.

Similar incidences have been reported in the past as having occurred within the premises of this particular sugar cane firm, and the management is contemplating taking a stern disciplinary action.

Previously similar incident of sexual escapades in office with female office workers had caused the blockade of sewerage yesterday in the offices of another sugar company when technician discovered that the sewerage was blocked by a heap of condoms flashed out of latrines after use.

Ends

leooderaomolo@yahoo.com

Kenya: Government told to put a clear-cut policy before the privatization of the sugar industry

Business and Economic News By Leo Odera Omolo In Kisumu City.

OPENING up the Kenyan Sugar Industry to private participation without prior arrangement of adequate policed guidelines, will open the gate to cheaper sugar imports from COMESA countries and instead only destroy whatever chance of sugarcane farmers of fighting their scourge of abject poverty.

This was one of the dozens of resolutions passed by over 400 sugarcane farmers from three cane growing zones in Western Province, Nyando and South Nyanza sugar belts.

The sugarcane farmers who were in attendance of a one day workshop held at the New Kisumu Hotel. The purpose of this workshop which was, jointly organized by theSugar Campaign for Change {SUCAM} and the Kenya National Sugarcane Growers Union {KENSGU}.

The purpose of the workshop was meant for the farmers to share views with some Members of Parliament, particularly those legislators whose constituencies are located in the sugarcane growing zones about their concerns about the on-going privatization process, though the MPs turned down the farmers invitation, the meeting went ahead and agreed to do one thing..

1} To seek for an urgent appointment for an audience with the Prime Minister Raila Odinga in order to share with him the farmers views over the contentious issues affecting the sugar sub-sector of the economy.

2}The farmers unanimous agreed that the costs of implementing reforms in the sugar industry are far less than the cost of turmoil that would engulf the sugar belts in Kenya should the sugar industry die.

3}The costs of implementing reforms in the sugar industry are far much less than the costs that would be required to enable the six million people who are the dependants of the sugar sub-sector to transition and transformed themselves into alternative source of livelihood.

4} Farmers are demanding that the government as a matter of utmost urgency to undertake debt analysis including the farmers claims in totality for upfront settlement before the closure of the divestiture process.

5} Sugarcane farmers requested that the government should consider the possibility of waiving debts owed by cane farmers in terms of loans during the debt restructuring programme as most of these debts are due to delayed or non harvesting of cane developed by these loans.

6}The government should facilitate farms access to affordability credit in addition to SDF with directive on the interests rates.

7}The farmers resolved that, before the conclusion of the disposal of sugar firms, the government should give directive to Growers and Millers to develop a cane payment system that facilitates the sharing of revenues derived from cane processing.

8}The farmers also resolved that the composition of pricing committee should be reviewed to reviewed to ensure fair and balanced representation of stakeholders especially, sugar cane farmers. In addition the farmers are demanding for the government to facilitate two experts as technical advisers during the pricing negotiations.

9}It was further resolved that the government should establish sugarcane testing unit to ensure that cane farmers are protected during the sucrose payment system. And that the government should revitalize out growers institutions to enable them to provide effective services to cane farmers.

The meeting further urged the government to consider as a matter of urgency to institute the farmers apex body to ensure respect to farmers rights. And in addition to this they urged the government to establish what they termed as “Out-Growers Mutual Fund and to allow farmers to pay for4five years with the delivery of 5 per cent to access and acquire shareholding equity in the sugar firms. And that it should gazette the sugar industry agreements.

He farmers further urged the government not to allow the sugarcane farmers to be punished without putting adequate policy and legal frame work in place to manage a liberalized sugar sub-sector, in which six million lives of Kenyans are at stake.

They insisted that the sugar industry has been destroyed due to excessive corruption and bad management and told the government not to transfer the sugarcane farmers from this state to another exploitative nature of capitalists, but to give them maximum protection and a fair deal.

In another key note presentation to the workshop, Eng. Phillip Makabong’o who is the KENSGU’s director of industrial dispute and research said the sugar industry in Kenya is viable and holds the future in the country’s economy if it is well managed.

“Cane farmers have consistently disputed the manner the industry is being run and managed, ranging from poor agreement, acts, regulations, corruption, mismanagement, embezzlement, political patronage and neglect to privatization.

Other pressing problems which the government should look into, said Eng. Makabong’o,it is important to address issues affecting the cane pricing like failure to harvest the cane crop at the agreed time, corruption in the industry, correct composition of the pricing committee and reduction on taxes/levies.

All outstanding debts to farmers must be settled before the privatization process. It is a common knowledge that several farmers have not been paid by the Millers running into millions of shillings. Due to the corrupt practices in the industry, there are many undecided cases pending before courts and tribunal.

Eng Makabong’ said the privatization of the sugar companies from the public to private firms is no solution to the cane farmer’s predicament. Instead, the government should come up with a clear-cut policy on how to improve the industry.

He gave the privatized Mumias Sugar Company in Western Province as the place where the farmers are now worst hit and the poverty index has gone up threefold.

He said there are plenty of lands for private investors to come and initiate their projects instead of the proposed take over of the existing factories. But all in all the government should rescue the sugar cane farmer’s sand the sugar sub-sector of the economy which is on the verge of total collapse.

Ends

leooderaomolo@yahoo.com

Sugarcane farmers in Western Kenya want to acquire more shares in the industry

Economic and Business News By Leo Odera Omolo In Kisumu City

The fine owned parastatal sugar companies have over the years incurred huge debts due to inefficiencies, corruption, mismanagement and political patronage.

The five sugar mills are Chemelil, Muhoroni, Nzoia, SONY and Miwani. Both Muhoroni and Miwani are currently under the official receivership.

Thus was disclosed during at tentative meeting of cane farmers from all sugar cane growing zones in Nyanza, Western and part of the Rift Valley Provinces held in Kisumu at the week,.

The one day workshop which was supposed to have been attended by only about 150 small scale sugar cane farmers from Busia, Nzoia, Mumias, SONY,West Kenya, Chemelil, Miwani, Kibos, Muhoroni, Soin and Ndhiwa, but to the surprise and shock of the organizers it attracted close to 300 cane growers.

Held under the joint auspices of Sugar Campaign for Change {SUCAM} ad the Kenya National Sugarcane Growers Union {KNSGU} at the New Kisumu Hotel,the farmers were told that for any accounting purpose all the five government owned sugar companies located in the three regions are technically insolvent,.

The Minister for Agriculture Dr. Sally Kosgei who was expected to address the workshop, did not show up. She, however, sent an apology. The same was with the Chief Executive Officer of the Kenya Sugar Board Rosemary Mkok. The Board was represented by its chairman Zacharia Okoth Obado, who faced hard time answering tough questions from the seemingly charged cane growers.

The organizers and farmers alike were disappointed that not even one single MP representing the sugar growing zones in Parliament was in attendance.

Making his presenting a paper entitled “Necessary Reforms to Harmonize Sugar Industry Privatization process a member of the SUCAM executive committee John Salim Kado said the debts that have been bedeviling the sugar sub-sector are built out of commercial loans and unremitted tax assessment and levies, sugar development fund {SDF} loans and third party creditors which include sugar cane farmers unpaid arrears for cane harvested and delivered to the millers.

The sugarcane farmer’s debts are treated as unsecured third party debts with no guarantee for face value compensation open sale of these sugar companies’ assets. This is a contentious matter since the debts were incurred in contravention of Sugar Act 2001 N0 10. Second schedule section 6. Whereas some of such debts in SONY, Nzoia and Mumias have been litigated at the regular law courts and the Sugar Arbitration Tribunal, thanks to the efforts of the KNSGU, the ones in Nyando sugar belts are only reflected in the companies books.

“Failure to settle these sugar cane farmers’ debts, upfront, will create conflict and come disincentive to sugar cane production. Secondly, it will deny the incoming new investors requisite soft landing. It is therefore recommended that, as has happened severally in the past, the government would classify these debts as priority and sensitive, coupled with a comprehensive bailout schedule.

And with the expected new investors injecting substantial own funds to factory modernization and rehabilitation, the demand pressure on SDF loans for these activities will scale.”Such created reserve could utilize for upfront settlement of these farmers claims in totality either as a grant or long term liability to the exchequer.

The farmers were further told that the five paratatal sugar companies Chemelil, Nzoia, Miwani Muhoroni and SONY are set to be privatized during the on-going government divestiture programme.This follows the cabinet approval in December 2008 and in line with the Privatization Act 2005.

Prior to Kenya’s independence in 1963,the sugar sector was purely in the private hands. It was at the independence, that the government started playing a central role in the start up, ownership and control of the industry. And within a span of 16 years,5 factories were established. These were Muhoroni } 1966} Chemelil {1968} Mumias {1973} Nzoia {1978} and SONY {1979}.The total government equity contribution amounted to 80 per cent. And with time, other privately owner sugar companmi9es sprang up. They included West Kenya Sugar Company Ltd, Kibos Sugar and Allied Industry and Soin Sugar in Kericho.

According to statistics made available to this writer, in 2008 total area under sugarcane crop in the existing milling zones was 169,421 ha, out of which 54,485 ha was harvested producing 5,204,214 tones of sugarcane for milling in the same period total available rate milling capacity was 23,463 tones, cane per day per day {TCD} out of which 56.25 per cent was utilized to produce 518,226 toners of made sugar. The un-utilized capacity could have produced an additional 23.93 per cent of sugar. This is lost revenue to the industry totaling Kshs 4.1 billions.

Sugar imports for the same perio9d was 218,607 42 per cent of total production[excluding the smuggled ones} with an estimated value of Kshs6.9 billion {USD 505 million}the Kenya sugar sub-sector has over the time become increasingly ineffic9dent and uncompetitive and at the same time does meet domestic requirement. On the other hand the sub-sector is a source of income generation for over 200,000 small scale sugarcane farmers, and also supports over 6 million livelihoodwithi9n Western Kenya and its environs.

The sugar sub-sector also has substantial financial input to the exchequer, local authorities and own revolving fund [Sugar Development Fund}.During 2005 and 2008,an average of kshs 3.3 billion VAT and Kshs 460 million PAYE monies were remitted to the exchequer annually.

The cess deductions to the local authorities was on average Kshs 361 million yearly. Sugar Development Fund levies averaged Kshs 1.4 billion yearly. But despite of all the huge resources being generated, poverty index in the sugar cane growing regions remained the highest due to poor and corrupt handling of farmer’s money by the millers.

The KSB chairman Zachry Okoth Obado went full length persuading the seemingly hostile farmers to accept the process off loading of shares by the government to private investor, explaining how the efficiently run factories will turn around their lots.

Ends

leooderaomolo@yahoo.com

Kenya: SONYSUGAR told to repair the damaged Rapogi-Uriri road

SONYSUGAR COMPANY TOLD TO REPAIR URIRI-RAPOGI ROAD WHICH WAS RECENTLY DAMAGED BY IT’S HEAVY MACHINERY AND TRACTORS.

Writes Leo Odera Omolo

The Awendo-based SONYSUGAR Company has been urged to undertake the repair work of feeder and access roads within its cane growing zones, which have been damaged by its heavy machines, tractors and worsened by the current long rains.

Uriri politician, who is also a Nairobi businessman, Mr. John Bob Awiti Otange last week wrote an open letter to the management of the government-owned white sugar manufacturing firm, and pointed out that an 8 kilometer section of Rapogi-Uriri road, which is linking the interior parts of the district to the main-Kisii-Awendo Migori highway is in a pathetic state. It has become impassable, particularly during the current heavy rains, and need urgent gravelling.

Mr Awiti-Otange pointed out that the on going heavy rains, which is pounding the Lake region incessantly, has damaged a number of roads in the district, including the Rapogi-Oria and Oyani Achuth, as well as Rapogi-Awendo. The situation has been worsened by the recent harvesting of cane in farms adjacent to Rapogi market, where the Awendo based sugar miller used heavy machinery, while winching its tractors stuck in the mud.

The state of these roads has now made it impossible for motorists, including residents, who works in towns in other parts of Kenya, as well as those who live in Nairobi, to access their rural homes, forcing many families to walk on foot for long distances before they can access their rural homes. Some motorists are forced to abandon their vehicles at Awendo town or in Uriri shopping centre and then trek between eight and 15 kilometers by foot, in order to be able to reach their homes.

The businessman-cum-politician reminded the SONYSUGAR management that Rapogi-Uriri road has for many years been an all weather road until its tractors used it a couple of weeks ago while ferrying cane from the field to the factory. This was done during the current heavy downpour and has devastated nearly all section of Uriri-Rapogi-Oria.

Rapogi-Oria is so important economically as it links an area where both tobacco and sugarcane are grown in abundance and it is now not possible for the farmers to have their products and crops transported to the market. The pathetic state of road hurts the local farming communities. It has hit them below the belt as they are now stranded with their produce at home.

Mr. Awiti-Otange also urged the Provincial administration and police authorities to curb the upsurging waves of crime rate around Rapogi trading center and its environs, saying the local communities are now living in fear, following the recent spate of cowardly attacks and violent robberies against traders and individual within the vicinity of Rapogi. The government, he added, should use its chiefs and their assistant in combating and stamping out thuggery in the area.

Apart from Rapogi Oria road, which is linking Uriri and Ndhiwa district, the Rapogi Awendo road is a busy road for the economy of the region, and the SONYSUGAR company should undertake its repair, together with the Ministry of Works, so that people returning home for Easter Holidays can access their rural homes.

He suggested that the repair work should start at field 3A, Moses Awiti farm, near the junction of Rapogi Awendo and Rapogi Uriri road, and run-over Nyarago bridge, towards Ramuom School and Kaminolewe, covering Nyamilu shopping Centre, to the Uriri D.C’s office. This particular section needs urgent attention.

Mr Bob-Awiti-Otange also urged those charged with the responsibility of handling CDF within Uriri constituency to ensure that the damaged small bridges linking the villages are repaired immediately, as this would make it much easier for the farmers to transport their wares to the marketplaces.

Ends

leooderaomolo@yahoo.com

KENYA: CHEMELIL SUGAR COMPANY REFUTES ADVERSE PRESS REPORT AGAINST IT

PRESS RELEASE

CHEMELIL SUGAR COMPANY IS A GOING CONCERN

Our attention has been drawn to a number of unfounded allegations against Chemelil Sugar Company to what we believe is an orchestrated campaign to discredit the Board and Management. The allegations which have been raised through a section of the Media are intended to create an impression that Chemelil is not in operation.

Contrary to such Media reports, the Board of Directors wishes to state that Chemelil Sugar Company is operating normally and remains a going concern, and is the least indebted of the government owned sugar firms because it strives to meet its obligations from internally generated revenue. The Board has full confidence in the Managing Director and will continue to support Management. Regarding specific allegations, our response is as follows:

1. Payment to Farmers on delivered cane

The Farmer still remains our primary stakeholder and the Company has ensured that it meets its obligations through payments for cane delivered. In the period October 2008 to January 2010, Chemelil Sugar Company paid out to farmers Kshs 1.78 billion. This has been achieved despite the fact that the current Management inherited a number of liabilities including Kshs 43 million Tax on sugar for exports that had to be paid to Kenya Revenue Authority.

It is noteworthy that every possible effort has been made to ensure that we amicably co-exist with our Farmers, with the Company undertaking initiatives to participate in the crucial cane development role both within Nucleus Estate and Outgrower farms.

Within the period 2009/2010, area under cane development went up by 20%. Over-mature cane which had been a nagging issue over the years, has all been milled.

Alongside this, the Company has sourced and issued to cane farmers fertiliser stock at a subsidized rate for cane development.

This has been done in demonstration of our good relationship with the farming community, which the Managing Director has emphasized and concretized through the farmer-outreach-programme he has been undertaking.

Within a short stint, Chemelil Management has had a number of meetings with cane farmers of Nyangoma, Chemase, and Achego areas to discuss issues of mutual concern.

2. Industrial Relations and Workers Issues:

Strike allegations

Indeed, Chemelil Management acknowledges that there was an externally instigated attempt to influence workers to go on strike, which was intended to coincide with an abortive meeting whose intentions were to disrupt operations within the Company. Our employees were wise enough to read the hidden agenda of the organisers of the abortive meeting and the strike, and declined to participate. These same organisers after failing in their hell-bent intentions, are still going about the Media with pilfered company information pursuing their evil plans. We urge the Farmers and the public to ignore them. Meanwhile, we urge the police to rein in on them for malicious propaganda.

Dismissal of Workers

The perpetrators are also alleging that the Company has dismissed workers on tribal grounds.

The Board wishes to note that 37 employees were dismissed after they were found to possess fake certificates. Authentication of the certificates was conducted by the Government’s Directorate of Industrial Training who went through all the certificates in an exercise that Chemelil management took up after the staff themselves raised the concern.

Another group of six senior managers were dismissed by the Board in late 2008 and early 2009 after numerous issues on corporate governance. At no point were these actions based on tribal consideration. Some of these issues are still a subject of the court, hence our inappropriateness to discuss through the press.

3. Sale of Sugar to SEO and SONS

It is unfortunate that an internal document was passed over to the Media by insiders in collusion with other people outside the Company, all intended to pursue a personal vendetta to Management. Management wishes to state that the Customer, SEO & SONS had a valid agreement of February 2009 which clearly spelt out the terms of sugar sale.

The company is in the process of clearing the balance it owes the Customer with due regard to the terms of the contract.

Also, the Board has instituted a forensic audit for the Company accounts in a housekeeping exercise to carry out an audit of sugar transactions for the years 2005 to-date. The exercise to identify an external firm is already underway.

4. Performance of the Factory

The Company took a bold step to conduct a comprehensive Factory maintenance in September 2009 after a lapse of over 5 years. A loan of Kshs 260 million was sourced from Kenya Sugar Board for the purpose including other internally generated funds for the annual maintenance.

Since maintenance, the production has improved with the Factory Time Efficiency (FTE) going up by 36%, Throughput went up by 36% Extraction is up at 87% as at the week ending 14th March 2010 and conversion of cane to sugar (TC/TS) recorded the best value at 11.65 during the same week.

With this level of improvement, we are now looking forward to serving the farmer more efficiently and to improve on all our operational areas.

5. Conclusion

The Company is committed to upholding good corporate governance and good management practices in its operations. Chemelil Sugar will continue to undertake its corporate social responsibility including supporting education through our Sugar primary school and the Academy, (the latter of which attained an impressive position 25 nationally), support health through our Health centre which serves company employees and the farming community, and nurturing youthful sporting talent through our Football team which participates in Kenya’s premier league.

We urge all our stakeholders to continue supporting the company as it continuously improves in its performance.

Dr. Simeon Mining
Chairman, Board of Directors,
CHEMELIL SUGAR COMPANY

Kenya: Ruto’s triumphant entry into Kisumu facilitated by ODM local leaders

RUTO’S TRIUMPHANT ENTRY INTO RAILA ODINGA’S KISUMU HOME TURF COMES AS A RESULT OF DISGRUNTLED ODM LOCAL LEADERS AND THE YOUTH.

News Analysis By Leo Odera Omolo In Kisumu City.

The last week triumphant entry into Kisumu City by the Agriculture Minister William Ruto caught local ODM leaders in deep slumber, and could serve as a deterrent warning to the party leader of the rapidly changing pattern of politics inside Luo –Nyanza.

Ruto’s visit came as a surprise to many residents. This is because Kisumu City is considered as the exclusive political zone of the ODM leader and the Prime, Minister Raila Odinga. It came at a time when “Agwambo” and his deputy have locked horns in a protracted war of supremacy within the party.

It was also within the same week when Raila Odinga had successfully masterminded the removal of his deputy-turned-arch-rival from the most important Parliamentary Business Committee.

To some of ODM dreaded youths, it was pay-day. Some of them are said to have lined their pockets with free money, ranging from 300, 500, 1000, 2000 and 5000 per person for their role in providing Minister Ruto with security protection in the unlikely event of heckling and booing happeneing. None of that happened however, and the Minster was well received by the residents, who listened to his brief speeches at the stop-over points in total silence.

Ruto first visited the Sugar Research Station, which is located at Kibos, in the outskirt of Kisumu City, and perhaps visited with the top managers of the nearby Kibos Sugar and Allied Industries, before making unscheduled triumphant entry into Kisumu City.

It is suspected that Ruto’s visit was pre-arranged by one unnamed director of the Kenya Sugar Board, who is working as a conduit ands a liaison contact between the Minister and some Sugar Millers operating within the Nyando Sugar Belt. The same contact is believed to have recruited the dreadful Kondele Bagdad Boys, who provided the security umbrella to the Minister and facilitated his visit to the violent Kondele and Manyatta suburbs.

Our source says the visit has since degenerated into jittery among the ODM local leaders on one side, and some Luo MPs on the other side. This is because the MP for Eldoret North is considered in this lakeside area as a spoiler, serving the interests of anti-Raila Odinga elements within the PNU and ODM-Kenya parties.

On the other hand, some level minded Luo politician would wish William Ruto to stay put in ODM as Raila Odinga’s deputy. Though the relationship between the easter while political friends has remained thorny and unpredictable for now, they see Ruto as the only politician in ODM who can balance the party. “Ruto’s presence in ODM could effectively work as check and balance against the PM’s excesses and dictatorial tendencies”, says an MP from Southern Nyanza region, who requested that hid identity should not be disclosed for fear of political reprisal.

Politicians from the greater Southern Nyanza have faulted Raila Odinga and his friends for insisting that all Luos must be kept in one Province, while those from the Southern Nyanza would wish to have their own province. The group wants a separation between the Luos of Southern Nyanza and those of Central Nyanza.

They want the area which includes the districts of Nyakach, Muhoroni, Nyando, Kisumu, Kisumu West, Rarieda, Bondo, Ugenya and Gem to be kept intact in one Province, with its headquarters in Kisumu.

The Southern Nyanza group want the district of Rachuonyo North, Rachuonyo North, Rangwe, Homa-Bay, to be placed in one Province, namely Southern Nyanza, with its headquarters at either Rongo or Homa-Bay.

But some of pro-Raila MPs from Central Nyanza have been heard chest thumping that they cannot allow the Luos to be sub-divided into two region, and that the community must be left intact as one unity. To which those anti-Raila elements in South Nyanza respond by saying “One Unity for continued political enslavement by the Odingas”.

The triumphant entry into Kisumu by Ruto last week has exposed Raila’s vulnerability and further revealed the existence of serious undercurrents, and intensive division among the Luo MPs.

It has also been established that some of the Luo MP do not wish to be involved in Raila political war with Ruto, arguing that the Minister for Agriculture had fought vigorously for Raila during the tallying of presidential votes at the KICC and has been steadfast in the ODM.

One MP was heard saying in a public joint in Kisumu, that Ruto’s opinion should be respected within the party hierarchy. Some of these Luo MPs also said they did not approve the role played by Raila against he eviction of thousands of Kalinjin squatters from the controversial Mau Forest Complex

It has since emerged that those who had assigned Raila Odinga the task of conserving the one important water Towesr in the country had some hidden ulterior motive. Their intention was to set the Prime Minister on a collision course with the entire Kalenjins and make him appeared to be an enemy of that community. It worked well for the schemers, separating the Prime Minister from the community that had voted for him man to man during the 2007 elections.

It has also emerged that some of the moderate minded Luo MP do not entertain the ongoing confrontation between Raila and Ruto, and feel that the Prime Minister should adopt a new, but pragmatic policy of consulting widely on any issue before it reaches the public domain.

This is the cause of the present total silences on the part of some of the hitherto outspoken Raila supporters among the Luo MPs, who would usually come out with blazing outbursts, but have now gone dead silent.

It appears also as if Raila Odinga has also burned his bridges with his staunchest supporters among the Luo MPs. Eight of these MPs are listed as being secretly supporting Ruto in his protracted war with Raila, while others are maintaining silence, but nursing diverse opinion about the ODM party’s future under thre Prime Minister’s leadership.

Ends

leooderaomolo@yahoo.com