BUNGOMA, Kenya, Jul 11 – Nzoia Sugar Company has paid more than Sh700 million to farmers since resuming operations earlier this year, signalling a major turnaround for the once-troubled miller as production improves and investments begin to bear fruit.
The company’s Chief Executive Officer, Sohan Sharma, said the revival of operations has injected nearly Sh900 million into the Bungoma County economy through farmer payments, employee salaries and business activity linked to the factory.
According to Sharma, one of the biggest changes under the new management has been the reduction in payment delays, with farmers now receiving their dues within two weeks of delivering cane.
“The prompt payment of farmers is critical in rebuilding confidence and encouraging increased cane production in the region,” he said.
Nzoia Sugar embarked on an extensive rehabilitation programme after the current management took over operations in May 2025, undertaking upgrades across key sections of the factory including the pre-mill section, mill house, boiling house, boilers, turbines, electrical systems and civil infrastructure.
The factory resumed crushing operations in January 2026 and has since processed more than 292,980 tonnes of sugarcane.
Although the mill has an installed crushing capacity of 3,000 tonnes of cane per day, Sharma said production currently averages about 1,900 tonnes daily as efforts continue to increase supply and operational efficiency.
He noted that investments in modern equipment and technology have significantly improved factory performance, with the milling ratio reducing from between 17 and 21 to 10, an indication of improved extraction efficiency and reduced losses.
Part of the turnaround has been driven by the introduction of a digital Smart Weighment System and a Distributed Control System aimed at enhancing transparency and accountability.
The new systems have eliminated manual manipulation at the weighbridge while allowing farmers to receive instant SMS notifications confirming their cane deliveries and corresponding weights.
The company currently supports 1,639 jobs directly and indirectly and is implementing an irrigation programme expected to significantly boost sugarcane yields.
According to Sharma, the project could increase production from an average of 40 tonnes per hectare to as much as 120 tonnes per hectare, helping secure long-term sustainability for the mill.
Despite the progress, he warned that inadequate cane supply remains the company’s biggest challenge.
Nzoia Sugar requires approximately 43,500 acres of mature cane to sustain operations through October 2027 but currently has contracts covering only 24,500 acres, leaving a deficit of nearly 19,000 acres.
The CEO called for stronger collaboration between farmers, financial institutions and county authorities to expand cane farming and secure the factory’s future.
Bungoma Governor Kenneth Lusaka, who toured the factory this week, welcomed the improvements and said timely payments had restored confidence among farmers after years of uncertainty and delayed earnings.
The governor urged the management to maintain the momentum and return Nzoia Sugar to its former status as one of Kenya’s leading sugar producers.
Lusaka also challenged political leaders to avoid using the company’s past struggles for political gain, insisting that the welfare of farmers and the long-term sustainability of the sugar sector should remain the top priority.
The revival of Nzoia Sugar comes amid broader reforms in Kenya’s sugar industry aimed at improving efficiency, enhancing farmer returns and reducing the country’s reliance on sugar imports.