Slow pace of sugar sector reforms leaves farmers a bitter lot
Financial Standard
By
Kepher Otieno
| Apr 20, 2021
Nearly a year after the National Task Force Report on the sorry state of the sugar industry, farmers are disappointed the proposed leasing of the six State-owned factories is yet to begin.
They say the factories are still facing financial difficulties despite President Uhuru Kenyatta directing Agriculture Cabinet Secretary Peter Munya to fast track the revival of the sector.
Most of the factories are unable to operate at the installed optimum production capacity and are sinking into debt.
Cane farmers led by the Kenya Federation of Sugarcane Farmers (KFSF) Secretary-General Ezra Okoth said there is no political goodwill to revive the sector.
“This is our assumption because since the National Task Force Report on sugar came out, nothing has happened. The firms owe us billions of shillings for supplies,’’ said Okoth. The report highlighted 10 issues cane farmers wanted addressed to save the sector from total collapse.
READ MORE
Roads dominate development budget in Treasury estimates
Why Ruto is at odds with Treasury numbers
How Nairobi bourse got its groove back
Rogue cable firms and ISPs face jail terms, hefty fines
Climate funds reach millions as counties post 87pc performance rate
SBM Bank signals turnaround with profit jump
Small business, big ecosystems: From insights to action: The next step for small businesses
Forex reserves slide as Iran war tests Kenya economy firepower
Tea export levy raises concerns among growers
Top bank chiefs reap millions in pay and perks on bumper profits
The suggested actions included bringing back the Sugar Act, 2001 and creating new rules anchored on the task force’s recommendations.
The report also proposed a review of imports rules and regulations and the revival of the defunct Kenya Sugar Board (KSB). Other concerns included acute shortage of cane, lack of adequate research and funding to support cane development, low sucrose yield and low-value addition.
The proposals for reviving the sector included facilitating extension services, variety and soil matching, disease and pest control, soil and plant tissue testing.