Chemelil sugar factory loses Sh20 million due to workers strike

NAIROBI, Kenya, Jan 26 -Chemelil Sugar Managing Director Gabriel Nyangueso says the firm has lost Sh20 million due to a two-day workers’ strike that has grounded its operations.

He said the factory mills 1,500 tonnes of sugar every day translating to Sh10 million.

“The stalemate has led to no milling and we are losing heavily in terms of sales,” he told journalists in Chemelil, Kisumu.

Chemelil Sugar Factory management and workers have been embroiled in a standoff over the payment of accrued workers’ arrears.

Truckloads of cane lined up almost two kilometers as workers kept off work further demanding the removal of the MD and the head of finance.

The MD remained wary of the workers’ strike which was initially revolved around salary arrears but shifted to his removal.

He said the effect of the strike has huge ramifications to the management, transporters, and farmers who had harvested their cane waiting to be delivered to the factory for crushing.

“These farmers will have to wait longer and could have their canes drying up in the farms if this standoff persists,” he said adding that transporters too are losing since they are paid on tonnage delivered.

“The loss is compounded other than the direct loss for the milling, there are other losses to the stakeholders occasioned by this stalemate,” he said.

The MD still insists that the strike is going against the directive that was issued by the Ministry of Agriculture that outlined a number of measures aimed at revitalizing the firm.

He cited an existing court case that had put on hold the strike by the workers until a case they lodge in court is heard and dispensed.

On Tuesday, the workers union officials directed all the workers to leave the factory in order to avert massive damage to the management offices.

“They stoned my office window panes and I am happy security officers arrested some of the union officials. We will demand damages,” he said.

Last week, the Ministry of Agriculture announced an immediate appointment of directors to run the management of the Company.

This is after the National Government revoked all the appointments of the directors for all the five owned government mills that were placed for leasing.