Sessional Paper No. 03 of 1966 on Government Guarantees for the Chemilil Sugar Company

Abstract

This project is the result of the Government initiative. It forms the most important part of the overall sugar scheme. The Chemilil Sugar Company Ltd. was incorporated with nominal capital of £ 100 in July, 1965 and field operations commenced towards the end of 1965. The sugar factory is due to come into production during the early part of 1968. Over 2000 small-holders will participate as cane growers producing cane worth £ 500,000 a year. The Chemilil Company will carry out the necessary heavy machine work for smallholders and provide technical advice. This has been facilitated by a £ 893,000 loan to the Kenya Government from K.F.W- the German Reconstruction and Development Bank. The scheme will therefore bring prosperity to a difficult farming area, which has no other high priced cash crop. The balance of the cane requirements of factory will be grown by large scale farmers and by the Chemilil Company Nucleus Estate. In addition to bringing prosperity to farmers in Chemilil areas and to those sections of commerce and industry serving these farmers, there will be considerable saving in foreign exchange.