Report By Leo Odera Omolo In Kisumu City.
THE ongoing political war of attrition between top leaders of the Orange Democratic Movement has now spread into the sugar industry with devastating impact.
Last week the CEO of Chemelil Sugar Company in Nyando district within Kisumu County was given his matching order and shown the exit door after the company’s board of directors refused to renew his contact allegedly on the firm instruction of the Minister for Agriculture Dr. Sally Kosgei.
Eng Edwin Otieno Musebe, the man whose efficient management has turned Chemelil Sugar Company around, rescuing it from possible total collapse three years ago, was sacked through an SMS phone message sent by the chairman of the company board of directors Dr.Mining.
Eng Musebe joined Chemelil Sugar Company three years ago at about the time when the company almost went burst. And immediately initiated rescue measures.
Musebe was hired after successfully in competition with other applicants for the job. But the hiring came during the reign of the Eldoret North MP and the Deputy leader of the ODM who has since turned out to be the sworn political enemy of Raila Odinga. Musebe was therefore perceived to be a Ruto’s point man in the sugar industry, particularly in the Nyanza sugar belt.
Musebe, a Luhyia by tribe, had succeeded Prof. Julius Omondi Nyabund,i a perceived Raila Odinga’s man, but his appointment was not well received by the local politicians, particularly by the Muhoroni MP Prof.Ayiecho Olueny, who is suspected to have brokered the appointment of Prof Nyabundia, fellow Luo, and his former colleague at the Maseno University, in whose management had run down the firm almost to the ground. And that was the genetic basis of both political and tribal connotation.
Despite a protracted war and vehement opposition against the managing director, Eng.Musebe, from the local leaders spearheaded by the area MP and civic leaders, his surrogates, but things went on well until William Ruto swapped his Agricultural ministerial dockets with Dr. Sally Kosgei who was moved to the Ministry while Ruto headed to the Higher Education Ministry. This change exposed those who were perceived to have earned their appointments through the influence of Ruto to a lot of danger.
Musebe in particular had the long history of being a Ruto associate ever since their days at the KY92 KANU outfits and this had put his chances of survival in a facility which is located in an area which is considered the ODM stronghold into question.
The man who was appointed the Acting managing director Mr Owelle, the company Agricultural Manager, had once acted in the some capacity and was among the several applicants who Eng.Musebe had beaten to the job.
It defeats all logic for anyone to blame Eng Musebe of dismal performance. A Chemelil woe has come about as a result of government poor planning in the industry and lack of effective implementation of the laid down policy from the government by its agency the Kenya Sugar Board.
One of the clauses of the Sugar Act stipulated that no new sugar crushing factory should be established within less than 40 kilometers radius from an existing one.
The Kenya Sugar Board had allowed the establishment and construction of Kibos Sugar and Allied Industry at Kibos within the outskirt of Kisumu City. The new facility has no nucleus estate .The establishment of this new facility with no proper source of raw cane supply is the cause of the current acute shortage of raw cane within the Nyanza sugar belt within Nyando district.
The establishment of the new facility in an area where already there are three other sugar manufacturing factories was a gross mistake and a total lapses on the government policy. The three other factories include the currently closed Miwani Sugar Mills, Chemelil and Muhoroni Sugar Mills. All the four factories are located within the under 40 kilometers in flagrant violation of regulation and rule under the Sugar Act.
As soon as Kibos Sugar and Allied Industry began crushing the pathetic situation of price, cut throat competition commenced in earnest. The new company which had no reliable source of cane supply, started poaching mature raw cane from previously exclusively cane growing zones for Chemelil Sugar Company, a wholly government owned facility which became drastically starved of raw material. This contributed largely the drastic reduction in raw material supply to the Chemelil factory reducing its operation into lame twice or thrice a week occurrence.
As if this was not enough, Kibos Sugar and Allied Industry Ltd management, having been aware that they had no reliable source of raw cane supply, resorted to erecting weighbridges at Awasi, only six kilometers from Chemelil factory for the purpose of accepting and weighing cane from within Chemelil cane growing zones. It further moved to Chepsweta which is situated on the main Chemelil, Miwani and Kibos road for the purpose of intercepting accepting and weighing cane from Nandi farmers along the Nandi Escarpment, which were previously crushed by Chemelil Sugar Company. This second weighbridge is also situated about six kilometers from Chemelil Sugar factory. In this context, it is the government which has failed to protect both Chemelil and Muhoroni sugar factories.
The cut-throat prices of cane per tone, offered by Kibos factory, became instantly incentive to the small and large scale farmers within the cane growing zone, previously classified for Chamelil and Muhuroni factories. And owing to the cut-throat tactics introduced by the new factory the price of raw cane went up from Kshs 3,200/- per tone up to Kshs 4,200/-per tone.
Chemelil became totally eclipsed and blocked from receiving raw cane from itt cane growing zone. The new factory with impunity went as far as harvesting cane indiscriminately including those whose owners were given cash advance for the development cane on the understanding that Chemelil would receive its money upon harvesting process.
Before the sacking of Eng. Musebe took place last week, Chemelil Sugar Company which has been reduced to crushing twice or thrice a week instead of seven days day and night a week had sacked close to 100 of its workers after declaring them redundant. If the cane supplies systems were arranged properly and executed in an orderly manner, both Chemelil and Muhoroni factories with their large nucleus estates could survive and go on manufacturing sugar without any hitches.
It is the same case now affecting the production of sugar in Nzoia and Mumias Sugar companies. The cut throat and cane prices war is also almost paralyzing the productions at the newly commissioned Butali Sugar Company and the long established West Kenya Sugar Company within the County of Kakamega.
The same poor planning of sugar factories would soon grind the production at the Awendo based SONYSUGAR to a halt when the Sukari Sugar Factory, now in its advance stage of construction, starts crushing cane. It is also located within less than 40 kilometers radius from SONYSUGAR. The Company has already purchase more than 60 tractors with persons ready to transport cane from the field within a month from now to be crushed at the new factory. But the big question is; Where will the raw cane come from? The company has yet to developed its own cane fields. All the canes seen around were developed with cash loan advanced to the farmer by SONYSUGAR.
A similar situation is expected when the now under construction Tans-Mara Sugar factory is commissioned. It has yet to developed raw cane of its own and will start scrambling for those farms which were developed with advance cash loans dished out to the farmers in the area by SONYSUGAR.
The argument being put up by those poaching for raw cane from other factories zones is that the sugar industry has already been liberalized thereby allowing cane farmer to sell their crops wherever they wished and wherever the can get good prices. Yes this is good, but how will the other factories get back their money which they had loaned the farmer for the development of the cane in question?
Ends
I disagree with a lot in this article. Chemelil sugar has been on the verge of collapse this year. About 2 months ago some employees had not been paid their salaries for 2 months. They had a lot of factory breakdown. A lot of employees in managment resigned due to disillusionment. Tuikong was the greatest CEO Chemelil had.
Let the CEO of Chemelil sugar be changed to give farmers futer hope,dont politicise everything all the time.
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