Sony Sugar, a company that has faced numerous challenges, has recently made significant strides by paying off a historic debt of Sh1 billion to sugarcane farmers. This development is part of the company’s broader efforts to restore its status and improve its operations.
Martine Dima, the incoming Chief Executive Officer, announced that the payment, made last week, is a significant milestone for the company. It has provided a renewed sense of determination to tackle other challenges as they work towards revitalizing the factory.
The initial payment was supported by the National Treasury, which contributed 92.5% of the amount, equivalent to Sh686 billion. The remaining Sh181 billion was settled directly to the sugarcane farmers last week. Dima mentioned that the company also added Sh125 million from its own revenues, reducing the financial burden as of early June.
The company is now focusing on reducing the waiting time for farmers who bring their crops to the factory. Dima noted that the aim is to shorten the payment period to just one month, recognizing that sugarcane farming requires significant capital and labor.
“We should not keep farmers waiting too long for their payments after they deliver their produce,” said Dima. The new payment system prioritizes those who deliver their sugarcane first, which has restored confidence among farmers. Some had previously abandoned sugarcane farming for other crops due to payment delays.
As a result of these improvements, the company has seen an increase of 15,000 tons of sugarcane per week. Despite this progress, Dima acknowledged that the company still faces a major challenge in settling Sh800 million owed to employees, a debt that has accumulated over the past 12 months.