The Cabinet's approval to write-off Sh117 billion owed by State-owned sugar companies is a major boost to farmers who have suffered losses due to mismanagement of the sub-sector. Despite the sugar sub-sector offering employment opportunities and generating revenue, it faces numerous challenges that have reversed the gains made.
Locally produced sugar faces stiff competition from cheaply imported sugar under the Common Market for East and Southern Africa and other world markets. What is worrying is that the sub-sector has been turned into a political tool, with those seeking elective offices promising heaven to farmers in almost every general election.
President William Ruto has been persistent in seeking long lasting solutions to the problems in the sugar cane sector since he was the Minister of Agriculture in 2009. While presiding over the opening of the Nairobi International Trade Fair at the Jamhuri Park, Dr Ruto said the intervention will inject competitiveness in the sector, and on expiry of the leases, the mills will revert to the communities on a cooperative model. He said the government was undertaking regulatory reforms that will ensure farmers are empowered and have direct say in the affairs of the sugar industry.
Kenyans should come to terms with the fact that the most effective way to improve the lives of millions living in poverty is to support agriculture. Transforming the agricultural sector will create jobs, raise incomes, reduce malnutrition, and kick-start the economy on a path to middle-income growth. Most of the industrialised nations began their economic ascent with agricultural transformation. It's encouraging that the government is reforming tea, coffee and the rice sectors to motivate farmers to increase productivity and earn additional income.
Rice production
The construction of the aggregation centres and industrial parks across the 47 counties will ensure agricultural produce is well stored and therefore saved from going bad. These centres will be strategic coordination points for our exports and thus will save rural farmers from inconveniences and losses. Plans to reduce importation of rice, which is currently at Sh34 billion annually, by expanding rice production schemes in Mwea and Ahero and establishing new rice production schemes, are part of efforts to encourage farmers to produce more.
The tea sub-sector is a source of direct and indirect livelihood to over 6.5 million people and also provides incomes and employment opportunities to over 750,000 tea farmers is the major reason reforms must succeed in the sector. To ensure economic transformation, the government should not relent in availing adequate and affordable working capital to farmers for increased productivity, and comprehensively manage agricultural related risks to cushion farmers from the uncertain nature of farming.
The revamping of the underperforming or collapsed export crops like rice, coffee, cashew nuts, pyrethrum, avocado and macadamia nuts, among others, is among initiatives by the government to transform agriculture that forms the backbone of our country's economy. Reforming the agricultural sector remains key to Kenya's economic transformation.
Mr Kaino works for the Presidential Communication Service. bethuelkaino@gmail.com
