Sessional Paper No.10 of 1989 on Kenya Government Guarantee Of Loan to South Nyanza Sugar Company Limited From Commonwealth Development Corporation

Abstract

In accordance with provisions of the Guarantee (Loans) Act, (Cap.461) of the Laws of Kenya, the following information is laid before the National assembly for consideration and approval. South Nyanza Sugar Company was established in 1977 with the dual objectives of reducing the country's dependence on Sugar import and also of providing a focus for development in the South Nyanza District and the 60,000 ·tones of Sugar per year capacity factory was Commissioned in 1979. With effect from January, 1986 Booker Agricultural International (BAI) took over the management under the Technical Management Agreement. The decline in production was reversed quite rapid under Booker Tate's management. The record production of over 45,000 tones of Sugar was achieved in 1988/89 financial year. Booker Tate has now re-established the· farmer's confidence in SONY and the farmers are now paid in time for their cane. The financial results have improved gradually and losses at SONY have been reduced to about half of their previous level. However, progress on the Financial results is dependent upon the rehabilitation programmie...