Monday, August 27, 2007

State reclaims Ramisi sugar property

By Philip Mwakio

The Government has invoked the compulsory acquisition clause and seized the Ramisi Sugar Factory land that changed ownership soon after its collapse in the 80s.

This is ahead of its intended revival after a series of unfulfilled promises by the previous Government.

Lands minister Prof Kivutha Kibwana said Sh64 million had already been paid out as compensation to a financial institution that had taken over the land after the original owners had defaulted in servicing a loan it had acquired.

A new strategic investor in the factory project — yet to be identified — will be allocated 15,000 acres while an additional 8,000 acres will be hived out to outgrowers. Firms from Karachi, Pakistan, have shown interest in the project, but are demanding to start factory with nucleus farm.

Associated Sugar Company, which is owned the Ramisi Sugar Factory, had taken a Sh300 million loan from Bank of India before it defaulted on repayment. The land held as collateral by was taken over by the bank.

Addressing landowners in Ramisi in Kwale District, Kibwana said sugar cane farming will commence soon after a strategic investor to revive the factory is identified.

Ramisi Sugar Factory was founded on a parcel of land in 1927 and was run by the Madvhani Group from 1947 to 1987 when it collapsed. It employed over 3,000 workers and operated on land measuring 45,000 acres, offering support to 4,000 famillies who relied on cane farming.

A farmer in the area, Mr David Ndirangu, said the revival of Ramisi was long overdue.

"While the Government has moved to bail out Muhoroni, Chemelil and Miwani Sugar Factories that at one time were facing imminent collapse, Ramisi was left out,’’ he said.

1 Comments:

Anonymous Anonymous said...

Its a noble idea that the Kenya govt is reviving the Ramisi Sugar factory. However, all that is seen is the forcefull eviction of the real land owners by the Kenya Police from the most fertile regions of the Msambweni division without an open agenda being tabled to the community. Who are the real owners of the Ramisi Sugar Factory hence the land?

9:10 PM  

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