Jared Kopiyo, the Chairman of South Nyanza Sugar Company (SONY) based in Awendo, has issued a warning that the plant is at risk of closure due to a severe shortage of sugar.
Speaking at the factory over the weekend, Mr. Kopiyo expressed concern that the facility is currently operating below its capacity because it must wait for up to seven days or more before it can run its machines, as cane is collected from various farms.
He emphasized that the factory may soon be forced to shut down unless farmers urgently increase their cane deliveries to support the milling and white sugar production processes.
Kopiyo, who is also a former Awendo Member of Parliament, urged farmers to accelerate their deliveries to the factory, enabling it to operate around the clock.
“It is concerning that the management has to turn off the machines for up to seven days while waiting for farmers to deliver their produce to the plant before resuming milling,” said Kopiyo.
He argued that the practice of stockpiling cane at the yard before resuming milling was wasteful and causing significant delays in sugar production. This delay was also preventing the factory from building a strong financial foundation to meet its debt and wage bill obligations.
Kopiyo revealed that the company currently owes substantial sums to farmers, workers, suppliers, and other service providers, accumulated over a three-year period due to its reduced operations. He noted that the factory’s machinery was in excellent condition, and the only obstacle to operating at maximum capacity was the shortage of cane.
Stephen Ligawa, the Managing Director of the company, stated that they are currently focused on a cane development program to ensure that the factory receives an adequate supply of cane from both nucleus and contracted farmers in the coming months. He emphasized that the management is working diligently to reduce the debt owed to farmers, suppliers, and service providers by the end of the year, with weekly payments being a priority.
