Farmers who supplied cane to Chemelil Sugar Company can now breathe a sigh of relief after the company promised to disburse Ksh.7.5 million towards servicing the arrears.
The company’s acting managing director Gabriel Nyangweso said the firm was committed to settling all the arrears that accrued in early 2022, adding that the government is supporting it in the move.
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“What the government has disbursed so far in payment of these early arrears amounts to 40 percent. To date, we are still waiting for the government to release the remaining monies equivalent to 60 percent,” said Nyangweso
Nyangweso added that Chemelil was only focused on areas outside the part that the government had promised to handle.
With the weekly reimbursements of Ksh.7.5 million, Nywangweso hopes that the payments will be fully settled in 6 months’ time.
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“We agreed to pay this Sh7.5 million every week, and we started it from the month of October and we envisage to complete it within six months,” he said.
In January 2022, the government through the ministry of agriculture inititiated a raft of measures, key among them being appointing the board of directors to oversee the management of the company.
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