Governors call for reinstatement of Kenya Sugar Board and Sugar Levy

Kakamega,

Friday, September 8, 2023

KNA by George Kaiga

Governors and elected leaders from the Lake Region Economic Block (LREB) are calling for the re-establishment of the defunct Kenya Sugar Board to cure the ills bedeviling the sugar sector in the country.

Led by the chair of LREB Prof. Peter Anyang’ Nyong’o, the leaders now want the Government to restore the Sugar Board saying the Agriculture and Food Authority (AFA) Directorate has failed to regulate the sugar industry.

Speaking today at the start of a two-day first sugar conference at Masinde Muliro University of Science and Technology (MMUST), the Kisumu governor said they also wanted the sugar development levy re-introduced to help in revamping the sugar research.

The Sugar Act was repealed following the enactment of the Crops Act that birthed the AFA in 2013.

Prof. Nyong’o heads the conglomeration of 14 Lake Victoria region counties of Kisumu, Kakamega, Siaya, Hombay, Busia, Migori, Nandi, Trans Nzoia, Bomet, Kisii, Nyamira, Kericho, Bungoma and Vihiga known for the growing of sugar cane as a staple crop but which has witnessed a myriad of challenges in the past few years.

Kakamega Governor Fernades Barasa, his Bungoma and Busia counterparts Ken Lusaka and Paul Otuoma respectively and representatives from other counties echoed the sentiments and said they would push for implementation of the sugar stakeholder’s report of 2019 in order to resuscitate the ailing sugar sector.

National Assembly Speaker Moses Wetangula who was the chief guest said he intended to recall Parliament from recess next Thursday to deliberate and pass the key Bill on the sugar sector.

He noted that President William Ruto was keen to revamp the sugar industry and called for concerted efforts from leaders in order to address challenges in the sugar sector.

Wetangula said Parliament would debate a memorandum and a motion submitted to Parliament by Cabinet Secretary National Treasury Njuguna Ndung’u to waive debts amounting to Sh117 billion owed by State owned sugar millers namely the ailing Chemelil, Muhoroni, Miwani, Nzoia and Sony Sugar Companies.

The speaker said Parliament would also discuss a Bill sponsored by Emmanuel Wangwe to, among other things, reinstate the Kenya Sugar Board and the Sugar Development Levy among others.

Wetangula asked participants at the forum to come up with key recommendations that would be incorporated in the Parliamentary Bill to have challenges in the sugar sector resolved once and for all.

 “Ensure that as the National Government waives debts owed by sugar millers, make sure farmers and creditors’ debts are also included,” he told the leaders.

President William Ruto announced the writing off Sh117.64 billion debt the five state-owned companies owe the government.

The President, while on tour of the western Kenya region last month, also promised to reform the sugar sector by declaring that he would personally deal with sugar cartels and that no public sugar factory would be privatized stating that the millers would only undergo leasing in order to improve their performance.

Currently, the sugar millers in the Western sugar belt have shut down operations to allow for cane regeneration after the country suffered an acute shortage. However local farmers want the ban on cane harvesting lifted.

Also in attendance was the Principal Secretary, State Department for Industrialization- Ministry of Trade and Industry Dr. Juma Mukwana, 60 Members of Parliament from sugar growing areas and other senior government officials.

Courtesy; KNA