SonySugar, once a beacon of recovery in Kenya’s sugar industry, is now struggling under allegations of mismanagement by its Managing Director (MD), Martine Dima.
According to an investigative story as done by leaked.co.ke, the company, which had seen its revenue rise from Sh400 million in 2019 to Sh5.132 billion in the 2022/2023 financial year, is now mired in financial scandals and questionable decisions that threaten its future.
Sources claim the MD has been misusing company funds, opting for costly car hire services in Kisumu despite the availability of company vehicles.
The car hire firm, suspected to be linked to his associates, reportedly charges Sh250,000 to Sh300,000 per week.
Coupled with his weekly personal per diems of Sh100,000 to Sh200,000, his expenses over six months allegedly exceeded Sh3.5 million, a stark contrast to the Sh600,000 annual expense of his predecessor.
The MD is also accused of being frequently absent from the office, using trips to Nairobi, Kisumu, and Nakuru to negotiate questionable supplier contracts.
Reports allege that he runs personal businesses in Nairobi, managed by individuals linked to SonySugar, including the chairman’s daughter and his personal assistant.
Previously dismissed by the Migori County Government for misconduct, the MD reportedly bypassed constitutional vetting through bribery and political protection.
Critics point to lax oversight from the Board chairman, the Ministry of Agriculture, and Treasury as enabling factors.
One of the most alarming issue involves a legal case, MIGORI HCCC NO.24 of 2015, where a farmer, Ngina Gitiba, was awarded Sh62,868,771 in damages for unharvested sugarcane.
Despite evidence that Gitiba had only five acres of cane, the MD opted for a private settlement of Sh95,515,950, ignoring advice to appeal the judgment.
This inflated payout has sparked accusations of corruption, prompting the Devolution Human Rights Defenders Forum in Homa Bay to call for a DCI investigation.
Critics argue the court overestimated the cane’s value and ignored SonySugar’s production costs.
By settling without challenging the ruling, the MD has further drained the company’s resources and eroded trust among stakeholders.
SonySugar’s turnaround story is now overshadowed by these allegations of financial impropriety and leadership failures.
Community leaders, employees, and human rights groups are demanding immediate investigations to hold the MD accountable and to ensure the company returns to ethical and profitable operations.
Whether these calls will prompt state action remains to be seen, but the stakes for SonySugar’s survival are higher than ever.
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