Kwale sugar factory will not be closed, State assures farmers

Kwale International Sugar Company Ltd. The successfully fended off a raid by a multi-agency task force charged with cracking down on illicit sugar. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Mr Musiambo said the government has not closed down the firm and has no intention of doing so.
  • On Monday, some sugarcane growers protested over the alleged closure of the factory.
  • Kiscol, which started its operations in 2014, is backed by Mauritian giant, Omnicane.

The government has refuted reports that Kwale International Sugar Company Ltd (Kiscol) had been closed down.

Deputy Head of Public Service Wanyama Musiambo said contrary to some media reports, the government has not closed down the firm and has no intention of doing so.

The firm’s management, he said, has confirmed that the factory is only undergoing routine maintenance.

“The correct position is that, as part of the ongoing crackdown on illicit, counterfeit and unfit for human consumption products, sugar was seized in the company’s godown, where chemical had also been stored.

“Samples from the seized sugar were taken by the Kenya Bureau of Standards for requisite testing. Once ready, the results of the tests will be communicated directly to the company,” Mr Musiambo said.

DELIVER CANE

In a statement, the official said in a meeting with the multi-agency team conducting the crackdown and the company’s directors led by Mr Kaushik Pabari on August 1, it was confirmed the factory was not shut.

He assured farmers contracted to supply cane to the factory that it is still open and that they should continue delivering the produce.

On Monday, some sugarcane growers protested over the alleged closure of the factory saying it would occasion them huge losses.

Kiscol, which started its operations in 2014, is backed by Mauritian giant, Omnicane.

It was built on the grounds of the collapsed Ramisi Sugar Factory at a cost of Sh17.8 billion.

It has the capacity to crush over 3,000 tonnes of cane per day.

Despite severe drought and a prolonged electioneering period that affected businesses last year, the Kwale-based firm realised a profit of Sh75 million for the financial year ended December 2017.