Nzoia Sugar Company Prepares for Loan Deal to Support Cane Farmers

NAIROBI – Nzoia Sugar Company Chairman Alfred Khang’ati has announced ongoing negotiations with various banks to secure a deal that will allow contracted cane farmers to receive advance loans using their mature cane crop as collateral. This initiative aims to provide financial support to farmers during challenging economic times.

According to Kenya News Agency, Khang’ati, speaking at the company premises, emphasized that this arrangement is designed to ensure farmers have a steady cash flow, aiding them in maximizing cane production and supply. He also announced that Nzoia Sugar Company will resume milling operations on December 4, 2023, after a four-month break mandated by the Agricultural Food Authority (AFA) to allow sugarcane to mature.

During the break, the company focused on revamping its nucleus estate with the support of the Agricultural Development Corporation (ADC) and the National Youth Service (NYS). Khang’ati urged farmers to prepare their sugarcane for harvesting and avoid selling to dealers who might undervalue their crop.

Additionally, he assured that the company plans to clear a debt of Sh269 million owed to farmers before the Christmas holiday. Ezra Kotut, the company’s acting Managing Director, affirmed the management’s readiness to maximize production upon resumption.