History
Pan-African Paper Mills, commonly known as Pan Paper, was the first and only ever established the paper factory in Western Kenya in the post-colonial period. It was referred to as “The engine of Western.” This was because of the major contribution of Pan-African paper mills to the economy of western Kenya. It not only contributed to the economy of Western Kenya but also that of Kenya at large. The people of the western region were proud of it and treasured it so much. According to them, this paper industry was like a tamed animal with numerous benefits given to them by the late Mzee Jomo Kenyatta, the first president of the Republic of Kenya.
You could feel you have arrived in Bungoma county or western Kenya from Nairobi when you passed by the factory complex and saw the white smoke from the chimneys accompanied by the paper smell. This paper mill was an idol and icon of the people of western Kenya, which made locals happy.
This paper mill was the reason for the rapid development of Webuye town from the early 1970s. Webuye town developed so fast not only in the then Bungoma district but also in the whole Western region at large. It was the biggest industrial complex in Kenya as well as East and Central Africa. Since its establishment, the development of Webuye town could not be matched with any other town in the region. However, its decline later in the year 2009 is linked partly to the structural Adjustment Programs from the late 1980s. However, much has been hidden under the carpet.
Adversity
The major three agenda of independent Kenya was engulfed in its three pillars of fighting poverty, ignorance, and disease. Therefore, the pan-African Paper Mills was set up to help fight poverty through the creation of jobs for Kenyans, boosting businesses and earnings of the country's foreign exchange. It also helped to fight the disease in the minds of Kenyans that only white men (colonial masters) had the capability of owning and running any processing and manufacturing industry. Kenyans now believed that even Africans had the capability to run a machine, as many of them were employed and taught various machine operation techniques. Many became experts in machine operation after being taught by Indian experts. Thus, the Kenyan people regained confidence that had been lost due to the mistreatment of colonizers.
The foundation stone for the mills was laid by the late president Jomo Kenyatta in the year 1972 at Nabuyole falls (in Webuye). Its co-sponsors were the International Finance Corporation (IFC) of the World Bank and India's Orient Paper Mills. Expertise and enterprise from India contributed largely to the success of Pan paper with manpower and operational skills.
Mzee Jomo Kenyatta chose this region because he considered the industry as a gift from the Kenyan government to the Bukusu and Tachoni people who fought imperialists during the struggle for independence and hundreds of them lost their lives on the Chetambe hills.
Impacts of Pan-African Paper Mills
After Pan-African Paper Mills had been officially opened in the year 1979 by the late president Daniel Arab Moi (the second president of the Republic of Kenya) several developments took place in Webuye. First, more than 3,000 people got jobs in the factory. Those employed were skilled, unskilled, and casual labourers. A big percentage of the employees were locals and people from western Kenya, although it had employees from all over Kenya.
Secondly, the factory gave jobs to many youths who were working as boda-boda riders(both bicycles and motorbikes) who used to ferry workers to and from the factory. This helped to improve their living standards as they had something to put on the table at the end of the day.
In addition, the factory attracted many investors who built rental apartments in Webuye town. These rentals accommodated more than 2,000 workers. This contributed greatly to the beauty and growth of Webuye town.
As more workers settled near the factory, there was a need to have a school and medical facilities. The factory set up a big school equipped with teachers and modern learning facilities. The school has now been replaced by a branch of Masinde Muliro University.
The mobile medical fertility which was set up by the factory was a blessing not only to the workers but also to the locals. This is because the population of the town grew so fast and one hospital (Lugulu mission hospital) could not provide fully to the booming population. One local, Wanyonyi Navuimba had this to say;
“Tulianza kusikia kuhusu kupanga uzazi kutoka Kwa madaktari wa pan paper. Walikuwa wakitembea na kutibu wagonjwa nyumbani. Kazi yao ilikuwa nzuri sana.”
[We first heard about family planning from the mobile clinics of the Pan paper Industry. They used to provide door-to-door services and their services were great.]
Moreover, several businesses such as shops, entertainment joints, bars, and restaurants were set up. Most locals were happy as they ventured into businesses that raised their living standards. Many business investors joined the locals to run these businesses. One local and an ex-worker of Pan paper Mr Ombete Mutila had this to say:
“Pan paper ilisaidia watu wengi sana. Nilikuwa nafanya kazi huko. Pia nilikuwa nauzia wafanyakazi wenzangu mayai.Hii factory ilisaidia watu Kenya nzima. Ilikuwa inapeleka makaratasi Kwa kampuni ingine Nairobi inaitwa Madhu Paper. Ilikuwa ikitengeneza tissue.”
[Pan paper helped so many people. I once worked there as an employee and businessman, supplying eggs to my fellow workers. This factory impacted the whole country positively. It used to supply its products to the Madhupaper factory in Nairobi, a factory that was making tissue papers.]
The Fall of Pan-African Mills and its Effects
The collapse of Pan-African Paper Mills has been largely linked to the structural Adjustment Programs (SAPs) initiated by the World Bank and International Monetary Fund from the late 1980s to the 1990s. It is believed that after SAPs, pan paper suffered a blow and eventually collapsed in 2009. The Indian contracted management abandoned the factory as debts rose highly. Many locals have different stories to tell about the collapse of this factory.
According to Mr Ombete Mutila, the debts of the company started piling up after the exhaustion of the government forests that the industry largely depended on for wood.
“Pan paper ilikuwa inapata miti bure kutoka Kwa misitu ya serikali. Stima pia ilikuwa ya bure na ushuru haukuwa.Walikuwa wakipea rais wakati huo zawadi ya pesa fulani tu akizuru kampuni. Vile miti ilianza kuisha watu wakaambiwa wapande miti lakini wengi hawakuchukulia maanani suala hilo. Halafu Moi akaondoka madarakani mwaka 2002, madaraka ya kiimla yakaisha na kampuni ya umeme ikaanza kudai ada yake. Wahindi wakaogopa kupata hasara na wakatoroka. Hapo ndipo kampuni ilianguka.”
[Pan Paper was used to get wood for free from the government's forests. The electricity was free too. The management used to give the president a little token as a gift. The company was not paying taxes either. After exhaustion of the government forest people were told to plant trees but did not welcome the idea. When President Moi's era came to an end in 2002, the Indian management felt it was expensive to run the company which had now been subjected fully to tax and the power company also demanded their pay. The Indians ran away. Thus, the company collapsed.]
Some locals who did not want their names to be mentioned linked the factory's collapse to political reasons in connection to the late president Moi. They said that when he saw his era coming to an end, he took a lot of money from the factory. He never wanted the western region to be empowered economically. He feared that his rivals from western could easily rise to power and suppress him by bringing his misdeeds to book. After taking the money, the factory was unable to pay workers and electricity. They also failed to import wood and eventually collapsed.
Impacts of the Collapse
The collapse of Pan paper had immense effects on the people of western Kenya and mainly Bukusu locals who made up a big percentage of workers.
It is saddening that over 3,000 workers lost their jobs abruptly in 2009 when the mill’s engine coughed its last. Most people depended only on the machine to pay all their bills. Many workers did not believe that the company had collapsed. Many died in town out of shock when they realized that the machine had collapsed for good.
Many people abandoned their families in town and ran away. They could not stand the pain of seeing their loved ones suffer in their hands. This left suffering and misery to many families that remained with single parents either a mother or father only.
Moreover, businesses collapsed and many businessmen lost their jobs. Those who used to run entertainment joints, bars, hotels, and boda-boda riders lost their jobs. To date buildings that were once rental apartments are now the home of monkeys.
Webuye town fell with the fall of Pan African Paper Mills. The town lost a lot of business investors as they ran to other towns like Bungoma. No wonder most people up to date don't prefer to invest in Webuye town because they feel the business here cannot run well. Most upcoming towns like Bungoma and Kakamega have almost all banks but, surprisingly, We do not have an Equity bank branch and many other micro-finance companies in Webuye to date.
Moreover, the hopes of many locals of Pan paper mills being revived again died. So many locals sold their land when they realized that the value would not rise as expected. Many had thought that the government would intervene in the situation and revive the factory because the government had a lot of shares in this factory but it failed to do so.
The school run by the company also collapsed with the collapse of Pan paper due to low enrolments as most people moved to other areas to look for employment.
In addition, the crime rate rose to its peak. Most people who were being supported by the factory, directly and indirectly, had lost their jobs therefore most of them resorted to other means to earn a living. They engaged in many criminal activities like robbery with violence and stealing among others. This put the lives of many locals at risk.
It is also worth noting that the economy of the region dropped significantly with the fall of Pan paper. Businesses died completely interfering with money circulation in the region. The region remained closed and dead thus affecting production in many sectors.
The New Rai Paper
Rai group took over Pan African Paper Mills in 2016 and named it Rai Paper. Since the takeover, Webuye town is rejuvenating. Most of the activities that had been shut down are now opening. For instance, most markets in Webuye that were dead with the collapse of Pan paper are now opening up for example Sango junction market, Dina junction market, and Mwanainchi among others are now roaring back to life. Most residents and locals are happy with the new developments.
In addition, more than 500 people have been employed by this new management. Most of these workers are former pan African Paper Mills workers who were recalled by the new management. The locals make up a big percentage of these workers.
Moreover, the new management has set up a college to train their interns and workers. There is also a plan for the Rai paper to renovate their hospital together with its school and bring it back to life as was the case with the former management.
Most schools that had collapsed are now opening up. For example Webuye ACK primary, St. Joseph primary, and PAG primary among others have strengthened up. The population in the named schools is now rising and hopes of expansion are underway. Webuye ACK primary has built a boarding section and more expansion plans are underway with the increase in the population.
The real estate business is coming too as more investors are now coming in. The locals are also busy coming up with businesses in the region. Indeed Rai paper has been new dawn to the people of Webuye town. Only a few sections of the new chemical industry are operational but the factory is producing more than 1500tons of paper daily. Effort is being made to revive all the sections of the former pan paper industry to produce more paper and create more employment.
It is the daily prayer of locals that the Rai group will make this industry great again. In that way, the lives of many will be transformed for good.
What about the payments,clearance (service )of the former workers?
Very informative.
Wonder if you can help me.Do they have bond 70 gsm in reams of 61*86
And a ream is how much.tried contacting but failed.