South Nyanza Sugar Company (SONY) has made a pre-tax profit of Sh113 million within the First Quarter of the Financial Year 2024/ 2025, after a decade of struggling with losses.
Speaking to the media, Managing Director (MD) Martine Dima, declared that the company is on the right trajectory, following the positive pre-tax profit since 2010.
“The Company is on the right trajectory and we are moving towards reclaiming our lost glory for the first time in 14 years,” said Dima.
In the last Financial Year of 2024/2025, the Company made a loss of Sh.700 million, which paralyzed the majority of company operations.
Dima who was made a substantive MD in July last year, assured the public that the Migori-based sugar mill pre-tax profit rate, had been attributed to an increased crushing rate of over 2,700 tons per day, a 90 percent machine efficiency.
On the issue of farmer pay delays, Dima acknowledged that the sugar mill was in the process of paying farmers who supplied their cane in October and November 2024.
He, however, attributed the delays to the December maintenance of the sugar mill, so that the crushing of cane was put on hold for three weeks.
“The delay of payment to our cane farmers for October (Sh68 million) and November (Sh78 million) was as a result of the maintenance in December, but we are in the process of trying to ensure we clear the bills in the coming weeks,” elaborated Dima.
The Company stopped crushing the cane in December 2024, when it was subjected to maintenance, which cost Sh300 million.
Dima, however, called upon the National government, to assist the Sugar Company to undergo full maintenance to boost the 40-year-old crushing capacity projected to be 3,000 tons per day.
The MD also disclosed that since taking over, the workload of legal cases has dropped from 3,500 to less than 1,000.
The cases had accumulated over Sh2 billion, but after audit reconciliation with court registries, the cases have since dropped below 1,000, representing a potential amount of about Sh500 million.
“We have been talking with law firms, to explain to them our situation and find a way of accommodating one another, and most of them have been positive. We want to thank them for showing us the good spirit, to ensure that our sugar mill continues to operate in an accommodating environment”, said Dima.
The Official, however, appealed to the County government of Migori, to stop impounding the Company’s vehicles due to an unpaid cess levy that had accrued for four years.
He noted that the current cess levy was up-to-date, urging the county government to wait for the audit report that has been transmitted to the national pending bills committee for verification.
Dima was grateful to the national government, the company support staff and the support of the South Nyanza Sugar Company Board that guided him in making better policy decisions.
By Beryl Akinyi and Makokha Khaoya