Kinyara Sugar Works Limited Boosts Local Economy

Kinyara Sugar Works Limited has a significant impact on the local economy. It's a major employer, providing jobs for thousands of people.

The company's operations have created a ripple effect, benefiting many surrounding communities. This is evident in the number of small businesses that have sprung up to cater to the company's needs.

The company's annual turnover is substantial, generating revenue that trickles down to local farmers and suppliers. This has a positive impact on the local economy, contributing to its growth and development.

Kinyara Sugar Works Limited has a rich history dating back to 1955, when the Omukama of Bunyoro Kitara Kingdom, Tito Owinyi, was given land to establish a Jaggery factory in Kinyara.

The factory began producing molasses in 1959, which was sold to various districts in northern Uganda, including Lango, Acholi, and West Nile, for use in alcohol brewing and sweetening products.

In the late 1960s, the government of Uganda partnered with the Omukama of Bunyoro to expand the factory and plantation, with the central government paying 30 percent of the profits to the Bunyoro Kingdom and the Omukama.

The partnership continued until 1966, when the Bunyoro Kingdom was abolished, but the factory remained operational.

In 1955, the Omukama of Bunyoro Kitara Kingdom Tito Owinyi was given land by the Bunyoro Native Government to establish a Jaggery factory in Kinyara.

The factory was opened in Kinyara, where the current factory is located, and Owinyi began production of molasses in 1959, selling it to the Lango, Acholi and West Nile districts.

The whole of northern Uganda relied on this product from Kinyara for their alcohol brewing and the sweetening of other products.

In the late 1960s, the government of Uganda asked the Omukama of Bunyoro to partner with him and the Kingdom of Bunyoro, and a memorandum of understanding was signed between the central government and Bunyoro Kitara Kingdom.

The central government agreed to pay 30 percent of the profits to Bunyoro Kingdom and the Omukama of Bunyoro.

However, the kingdom was abolished in 1966, but the factory continued to run.

Production of sugar ceased during the political and economic turmoil in Uganda in the 1970s and 1980s.

In the 1990s, KSWL was rehabilitated by Booker Tate Limited with aid and loan agreements for various funders underwritten by the Ugandan government.

Sugar production resumed in 1995, and the government sold 51 percent shareholding in Kinyara Sugar Limited to the then Rai Group in the 1990s.

The Rai Group later acquired an additional 19 percent shareholding in KSL in 2011 for US$9.1 million in cash.

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The Kiiha Conservation Program was established in 2005 to protect the Kiiha River and its surrounding ecosystem.

This program has been successful in reducing deforestation and habitat destruction in the area.

The program's efforts have led to an increase in biodiversity, with many species of plants and animals thriving in the region.

The Kiiha River's water quality has also improved, making it safer for people to drink and use for agriculture.

The local community has been actively involved in the conservation efforts, with many residents participating in tree planting and habitat restoration projects.

These community-led initiatives have not only helped to protect the environment but also provided economic benefits through sustainable forest management practices.

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Kinyara Sugar Works Limited has a significant industrial sugar production capacity, manufacturing 60,000 metric tones of industrial sugar annually.

The company's production line was commissioned in February 2022, and it also produces 70,000 metric tonnes of brown sugar.

Kinyara Sugar Works Limited has a strong commitment to supporting local farmers, as evident in its price increment for cane supplied to the company.

The price of cane was increased to Shs 128,000 per tonne, which is a significant improvement from the initial price of Shs 88,400.

The company's main factories are located in the town of Kinyara in Masindi District, Uganda's Western Region. Kinyara is approximately 17 kilometres west of Masindi, the nearest large town and district headquarters.

The location of the factory is about 227 kilometres north-west of Kampala, Uganda's capital and largest city. You can find the exact coordinates of the factory at 1°38'14.0"N, 31°36'30.0"E (Latitude: 1.637222; Longitude:31.608333).

Masindi District is the capital of the area, and Masindi is the nearest large town.

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Kinyara Sugar Works Limited has increased the price it offers to cane farmers for the second time in the current financial year, raising it to Shs 128,000 per tonne.

This latest price increment is a result of protracted meetings between the company's management and the board of directors of Masindi Sugarcane Outgrowers Association Limited.

The price increase is not final, with the two parties agreeing to continue engaging with each other to find a mutually beneficial solution.

The price offered by Kinyara Sugar Works Limited will continue to be increased, with the company's management optimistic that the average sugar price will continue to rise, reaching Shs 200,000 per 50-kilogramme bag by April next year.

Farmers who supplied sugarcane between July 1 and September 19, 2022, will receive Shs 27,000 per tonne as a one-time payment.

Kinyara Sugar Works Limited is also preparing to pay Shs 11 billion as arrears to the farmers, with the company's agriculture manager optimistic that the payment will be cleared by November.

Farmers are advised to guard their cane against thieves who have become rampant in Masindi district, and to use the money received to buy fertilisers to improve their cane yields.

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