COMPANY BACKGROUND INFORMATION
Chemelil Sugar Company Limited (CSCL) is located along Awasi-Chemelil-Nandi Hills road in Muhoroni sub-county in Kisumu County, about 50 kms East of Kisumu City. Chemelil is a State Corporation and was established in 1965 to produce mill white sugar. It has a total of 2,779 hectares of land out of which 2,270 hectares is caneable land and surrounded by many outgrower farms with a total caneable land of approximately 16,171 hectares spread in Muhoroni, Nyando, Tinderet, Nandi South and Nandi East sub-counties.
The Company was incorporated on 15th of July, 1965 as a private limited Company with the original shareholders being Agricultural Development Corporation (ADC), German Development Bank, Grindlays Development Finance Corporation of Kenya and Gutehoffnungshuttle (ghh) and Vivo Kenya (formerly Kenya Shell Ltd). Original shareholding was Kshs.30,000,000.00 with the Government of Kenya (GoK) shareholding at 43.33%.
In 1974, the Company became a parastatal when the Government’s shareholding went up to 95.39% through an aid package by the German Government. The authorized capital of the Company stood at Kshs. 173,215,620.00.
At inception, the Company had a milling capacity of 85 Tonnes of Cane per Hour (TCH). In 1968, the amount of cane ground and sugar bagged was 116,516 and 10,826 tonnes, respectively, at a Tonnes Cane and Tonnes Sugar (TC/TS) of 10.76.
The factory’s production performance continued to improve and to exemplify this as at 30th June, 2012, the total cane milled and sugar produced since inception was 23,885,866 tonnes and 2,131,825 tonnes, respectively, at an average TC/TS ratio of 11.20.
Earlier in 1991, the Company achieved its best performance at 822,349 tonnes of cane and 82,905 tonnes of sugar at a TC/TS ratio of 9.92.
The Company’s milling capacity now stands at 135TCH. When fully operational, it is capable of milling up to 900,000 tonnes of cane a year. The factory draws cane for milling from outgrower farmers in Muhoroni, Nyando, Tinderet, Nandi South and Nandi East sub-counties, with about 85% of the cane supplied by Outgrower farms and 15% obtained from the Company’s Nucleus Estate.
As the Company grew and ownership changed, so did its management. At inception, the agricultural operations were managed by Agrar Und Hydrotechnic of Essen, Germany, while the factory and administration departments were managed by American Factor Associates of Hawaii, who became the overall managing agents in 1966. In 1969, Bookers Agricultural and Technical Services (BATS) became the managing agents. In 1985, Kenyan Africanized management took over and this has remained so to-date.
- To produce high quality mill white sugar as part of a national strategy for achieving self-sufficiency in domestic sugar requirement in the country and;
- To contribute towards the integrated national economic development within Western Kenya
- Efficiency in production and service delivery at all times
- Uphold honesty and integrity in all actions
- Attach great importance to the contributions by all and in share the Company’s success with stakeholders
- Build sustainable relationships with the stakeholders to enhance the Company status
- Observe human rights and equality for all and at the same time respect the dignity of the individuals
- Attach great importance to teamwork and encourage the same thorough consultative approach to Management
- Remain committed to fulfilling the Company’s goals and objectives and the to take precedence over individual objectives
- Encourage and reward achievement and innovation by staff
- Conform to high standards with respect to safety, health and environmental issues
“ To produce and market quality sugar and related products efficiently and competitively beyond the expectations of stakeholders”