Nzoia Sugar Company in Bungoma County has stopped its operations due to huge debts as well as a shortage in sugarcane.
The ailing miller is said to be owing farmers and workers more than 700 million shillings and has been unable to remain afloat.
The miller has also blamed the shortage in sugarcane as the main reason behind its closure. The management has blamed other millers of poaching sugarcane from its farmers leaving it with no raw materials.
The company closes down less than two weeks after President Uhuru Kenyatta, on touring the region, promised to release 300 million to the troubled miller but the money is yet to be disbursed.
The sugar industry in the country seem to be going through an economic turmoil with yet another player, Mumias Sugar Company still in the economic Intensive Care Unit with little hope of coming out of the woods soon.
“The government should just wake up from its long sleep and save the industries. They are dying. Soon we shall have no industries left,” lamented Zablon Wanjala, a sugarcane farmer in Bungoma.
The closure of Nzoia also means that the import of sugar from other countries will have to be stepped up to address the increasing demand.