The national government has released a Sh500 million bailout to Nzoia Sugar Company.

Agriculture Cabinet Secretary Peter Munya said the funds will be paid directly to millers' creditors.

Sh200 million of the funds have been set aside for factory maintenance, while Sh300 million will be paid as part of the money owed to farmers and other suppliers.

Last month, President Uhuru Kenyatta announced a Sh1.5 billion bailout to the sugar sector, which currently is on its knees.

Munya said the National Government will ensure procurement within the company follows due process.

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The CS also said the government will monitor those types of equipment purchased by the board.