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Youth Coordinator
EFFECT OF MUMIAS SUGAR COMPANY ON THE ECONOMIC DEVELOPMENT IN NABONGO LOCATION, MUMIAS DISTRICT

BY

MALOBA A HASSAN

REG. NO: BA/35/07

DISSERTATION SUBMITTED TO THE DEPARTMENT OF ANTHROPOLOGY, SCHOOL OF ARTS AND SOCIAL SCINCES, IN PARTIAL FULFILLMENT FOR THE REQUIREMENTS FOR THE AWARD OF A BACHELOR OF ARTS DEGREE IN PUBLIC ADMINISTRATION OF MOI UNIVERSITY

APRIL, 2011

CHAPTER ONE

1.1 INTRODUCTION

1.1.1 Background to the study

Companies and industries are important stimulus to development in any rural area due to creation of employment, market for the raw materials and the general improvement of the lives of the people. This is partly the reason why people move from rural areas to urban and industrial areas in search of employment. This is also the reason why people move from their own countries so as to seek better employment opportunities and good infrastructure elsewhere.

The establishment of Mumias Sugar Company was informed by the government’s import-export substitution policy that aimed at reducing dependence on importation and achievement of self sufficiency in sugar production. It also aimed at providing a source of income for farmers through creation of jobs: there being no other major industrial development in the area at the time. The Kenya sugar board embarked on the creation of local factories to help reduce the dependence on imported sugar. It was within this policy framework that Mumias Sugar Company was established in 1973. This was also followed by the establishment of Nzoia Sugar Company and Sony sugar factory in Muhoroni. This government policy was positively received from the host communities, while the government stepped up sugarcane growing campaigns to encourage the growing of the crop. A lot of people embraced the sugarcane growing as campaigns went on to encourage the planting of sugarcane crop.

As more and more people were encouraged to plant sugarcane, the Company itself also set up nuclear farms on land



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