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CHEMELIL SUGAR COMPANY RECEIVES GOVERNMENT KSHS. 300 MILLION BAILOUT AS FARMERS CANE PAYMENT PLEDGED BY PRESIDENT UHURU

By Bosco Magare

Chemelil Sugar Company has received a Government bailout of Kshs.300 million pledged by President Uluru Kenyatta to pay farmers cane outstanding payments.

The bailout cheques were presented to farmers during a colourful ceremony presided over by Ministry of Agriculture, Livestock & Fisheries Cabinet Secretary (CS) Willy Bett.

During the ceremony Bett presented cheques to farmers to settle outstanding cane payments owed growers by the company for sugarcane deliveries made between the year 2014 and 2017.

Government officials present during the ceremony included Kisumu County and Nandi County Government Governors Prof. Anyang’ Nyongo and Steven Sang, respectively.

Other guests included Muhoroni Member of Parliament (MP) Onyango K’Oyoo and his neighbouring Nandi counterpart Tinderet MP Julius Melly, Nyando MP Jared Okello, Mosop constituency MP Vincent Tuwei, Kisumu and Nandi County Senators Fred Outa and Samson Cherargai, respectively, including several Members of County Assemblies (MCAs) from both Kisumu and Nandi County led by host Chemelil Ward MCA Maureen Otiang.

The occasion was also graced by   the Agriculture Food Authority (AFA) Director General Alfred Busolo, Sugar Directorate Interim Head Solomon Odera and a number of other top ranking Government officials representing different ministries, departments and agencies.

Speaking during the function acting company Board chairman Benson Owiti and acting Managing Director Gabriel Nyangweso thanked the Government for the bailout to settle farmers outstanding cane payments.

‘We sincerely thank the Government and particularly President Uhuru for his personal intervention in ensuring the disbursement of Kshs. 300 million which he had earlier pledged during his recent tour of Tinderet constituency in Nandi County, ‘’ Owito said.

Owiti  also informed the CS about the challenges the company is currently facing which include among others the need for a Government funding to the tune of Kshs. 0.5 billion for factory rehabilitation to enhance efficiency and production which will facilitate generation of revenue  by the company to timely pay all its stakeholders, key among them cane farmers and employees.

He equally outlined to the CS  other challenges facing the company which include a seven months delayed payment of employees salary arrears, since April 2017 amount to Kshs. 315 million and appealed for a Government bailout on this end too.

Owiti also appealed for Government funding of Kshs. 150 million to facilitate undertaking of comprehensive cane development by the company including a further disbursement of Kshs. 83 million for construction of five bridges within Kisumu and Nandi Counties to ease cane deliveries by farmers to Chemelil Sugar factory.

The company acting MD on his part assured the CS that with a well performing rehabilitated factory all stakeholder obligations will be addressed by the firm.

Bett who presided over the function during which farmers representatives and the company MD presented a litany of issues and challenges currently being experienced said the Government will strive to provide a conducive environment for the company to do business.

The CS also said the Government through his ministry will hasten the process of implementing a set of sugar framework regulations which include zoning of the local sugar factories sugarcane command zones, bearing provisions to address the cane poaching menace experienced in the sugar sub-sector, which has adversely impacted on millers operations.

However, Bett urged the company management to strive towards operating efficiently and providing quality service to growers, while the CS challenged farmers to also redouble their cane development efforts to ensure adequate availability of the raw material to the factory.

The ceremony held at the company’s stakeholders open-ground was graced by scores of high ranking Government officials and several prominent politicians, cane farmers, the firm’s employees and members of the Chemelil Roundabout Trading Centre business community.

The company’s stakeholders and cane growers were represented during the function by three key farmers representatives Samuel Bonyo, who is also chairman of Chemelil Outgrowers Company (COC) representing and D.K. Kosgey who spoke on behalf of farmers from Kisumu and Nandi counties respectively. Caleb Ochieng’ represented the cane cutting contractors.

Both Bonyo and Kosgey thanked the Government and particularly the President for the bailout to settle cane farmers outstanding payments and equally appealed to the state to urgently allocate funds for rehabilitation of Chemelil Sugar factory.

CHEMELIL SUGAR COMPANY PLANS TO IMPLEMENT ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM TO ENHANCE EFFICIENCY IN OPERATIONS



 

 

 

By Bosco Magare

Plans are at an advance stage by Chemelil Sugar Company to implement an Enterprise Resource Management (ERP) System to enhance efficiency in all operations in the organization.

Acting Company Managing Director Gabriel Nyangweso made the disclosure during a live presentation on the workings of the ERP System by a reputable international firm A SofTech held in the company boardroom on 1st December, 2017.

Speaking during the presentation Nyangweso said Chemelil Sugar Company is keen on implementing aspects of the ERP System this financial year-2017/2018.

The innovative ERP System presentation was done by A SofTech Director Sewak Grewal, who was accompanied by one of the firm’s Business Development Manager Willy Mwangi.

Grewal embarked on the presentation with a brief company profile of  A SofTech, an international Information Technology (IT) firm with branches in Kenya and several African countries in Africa such as Ethiopia.

 A SofTech Director Grewal said the firm also has world-wide branches in far-flung continents such as South America and Asia, where the IT Company is headquartered in India.

Grewal said A SofTech is familiar with the operations in the sugar industry the world over and the firm also has a branch in Peru in the South America.

‘’ Personally, I have spent 15 years in the sugar industry. And,  A SofTech works closely with reputable Indian universities and research institutions in enhancing our ERP version known as Precision Agriculture Management (PAM) System, ‘’Grewal said.

He said researchers and scientists in these elite Indian universities are ready available to A SofTech and their new ERP research inputs and findings are available to the IT firm.

Grewal said,  A SofTech’s ERP version of PAM System is a software that is capable of carrying out various agricultural operations with the ultimate aim of ensuring an agro-based organization such as Chemelil Sugar Company obtains optimum yields.

The  director said their the firm’s ERP version PAM System is capable of carrying out and improving efficiency in various agricultural processes such as land recruitment, land preparation, seed material, seed germination and crop germination, among others.

In a separate follow-up interview A SofTech’s Business Development Manager Mwangi said once Chemelil Sugar Company management concludes the requisite process for procuring the firm’s ERP PAM System version it will take about 2 months to undertake staff training  and deploy the software in Chemelil  Sugar Company.

Mwangi said the firm’s ERP version PAM System software is new in the market and so far has only been deployed in one of the leading Indian universities, including a private agricultural farm located in the Northern part of India.

This implies, Chemelil Sugar Company will therefore be the first agricultural firm in Kenya and the African continent to embrace this new ERP PAM System version.

Mwangi said although ERP systems have existed and been used the world over for many years now, the A SofTech’s version is relatively new, being one year old since it was developed by IT scientists in Indian universities associated with the firm in the development of such softwares.

‘’ Though many ERP versions exist worldwide, in particular A SofTech’s new PAM System software version  is a result of enhancements of a version that has been running made by scientists in the Indian universities collaborating with the firm, which is involved in the commercial deployment of the PAM innovation.

And, Chemelil Sugar Company’s acting ICT manager Samson Oyayo is optimistic and confident that the ERP System that the company plans to embrace will enhance efficiency in the company’s entire special sections and departments; Agriculture, Factory, Marketing, Human Resource , Finance including Corporate Affairs, Internal Audit, Quality Assurance, Procurement and Legal Services

‘’ The ERP system that the company intends to implement will enhance efficiency of sections and departmental operations since it will avail real time information which is critical for decision-making by management,’’ Oyayo said.

Oyayo said the deployment of the ERP system in the company will mark a radical shift from the firm’s present reliance and use of standalone systems to manage various operations such as the payroll, financial ledger , stores and cane weighbridge.

He said the current stand alone systems being used by the company are less efficient since they involve the export and import of information from one system to the other, a process which is cumbersome and time consuming.

‘’ The planned implementation and deployment of the ERP system by the company will enhance the synergy of operations in the entire organization, since once information is captured through this system it will be available in a unified data base, unlike the present stand alone systems which capture data in individual databases,’’ Oyayo said.

Senior members of the company’s management team present during the ERP presentation by A SofTech  and representing the following company operation areas; Agriculture, Finance, Factory, Marketing, ICT,  Legal Services, Management Accounts, Corporate Affairs,  Quality Assurance  and Internal Audit were  Joel Kiplagat, Steven Alouch, Titus Koech Samson Oyayo, Hilda, Isaac Chepsiror, Bosco Magare, Jacqualine Kotonya, and Amos Kosgey.

 

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