Farmers welcome Sh1.5 billion allocation to sugar sector

CS Njuguna Ndungu presents the Budget Policy Statement at Parliament, Nairobi, on June 13, 2024. [Elvis Ogina, Standard]

Sugarcane farmers have welcomed the government's decision to allocate Sh1.5 billion for the maintenance of Cane Testing Units (CTUs) and payment of workers' salary arrears.

The allocation is contained in the Budget Policy Statement presented by Treasury Cabinet Secretary Njuguna Ndungu Thursday.

“We appreciate the recognition of the Sugar industry by the CS in his Budget Policy Statement by an allocation of Sh1.5 billion specifically for CTUs maintenance and payment of salary arrears for workers,” said Kenya National Federation of Sugarcane Farmers Secretary General Simon Wesechere.

However, Wesechere said the allocation falls short of farmers' expectations because the total workers' arrears stand at Sh5.7 billion.

“Efficiency of CTUs is hinged on a robust research framework with cane varieties and efficient transport system. Thus without addressing the research component, the CTUs shall remain white elephants in the reform of the sugar industry,” he said.

He noted that the government rakes in more than Sh2 billion monthly in taxes from the sugar industry but it only allocated the sector a paltry Sh1.5 billion in the 2024/25 financial year.

“Without an allocation for cane development, we ask the President to sign into law the Sugar Bill 2023 that stands to salvage the industry for it shall have safeguards for self-sustainability, otherwise the industry is doomed,” said Wesechere.

Former Shinyalu MP Silverse Anami said many Kenyans were struggling to put food on the table and the budget ought to have considered their plight.

“If you are representing people you must listen to them, people are being taxed heavily, interest rates have gone up at the expense of investors. Hustlers are suffering the most, our MPs must be realistic,” he said. 

Butere Anglican Church Bishop Rose Okeno said taxes on essential food items including bread were ill-informed.  “Many families depend on bread, the government should not impose taxes on essential items,” she said.