By Stephen Makabila and Lawrence Aluru
Western, Kenya: Issues that cloud the vulnerable cane farming and elective politics in the former Western and Nyanza provinces have proved inseparable.
Over the years, ambitious politicians from the region have used the fortunes and misfortunes of cane farmers to their political advantage, depending on circumstances.
“Cane farming contributes to the high level poverty in these regions, but sustained politics around it has seen the cycle of poverty continue,” says Bumula MP Bonface Otsyula.
Despite the meagre benefits and suffering, political leaders in the region are up in arms against a government proposal to shift cane farming from the region to the Coast.
The government intends to overhaul the sugar sector as it races to take advantage of the one-year extension of the Common Market for Eastern and Southern Africa (Comesa) safeguards granted in February.
Had a tariff that protects domestic sugar makers against foreign imports been dropped in February 2014 as had earlier been expected, local factories could now be in an open competition with Comesa member countries involved in sugar export.
Thus the one-year Comesa extension beginning March 1 means Kenya has 12 months to improve on the sector’s performance to make it withstand competition. The government’s plan involves shifting sugar farming from Western Kenya, which has 12 sugar factories, to the Coast region. Of the 12, only Mumias Sugar Company is privatised – the remaining 11 still lined-up for privatisation.
Direct ownership
Agriculture Secretary Felix Koskei says the coastal region is preferable as the cane will mature faster and farming can be mechanised. While cane at the Coast has higher sucrose levels and matures in 12-13 months, it takes 18-24 months in Western Kenya.
In Western Kenya, multiple challenges ranging from high operational costs, poor cane quality and infiltration of illegal sugar imports have over the years made it hard for local factories to break even.
Otsyula questions why the government has not consulted elected leaders from the region on the relocation option.
“They cannot plan relocation without consulting elected leaders in cane growing regions. Its an insult to us leaders who represent the interest of cane farmers,” he says.
Bungoma Governor Ken Lusaka says alternative options should be sought by the government.
“Is relocation to the Coast the only option? What the government should do is allow county governments to oversee privatisation of these sugar factories and facilitate direct ownership by local farmers,” he says.
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Siaya Deputy Governor Wilson Onyango says if the government moves the sugar sector to the Coast, it will disable the Western Kenya economy. “The national government must refrain from privatising the remaining 11 sugar millers without involving the county governments,” he said.
Some MPs have even accused the Jubilee government of derailing sugar farming in Western Kenya and failing to maintain the few sugar companies, only to opt to relocate the cash crop to the coastal region.
Onyango K’Oyoo (Muhoroni), and Jakoyo Midiwo (Gem) recently claimed that there were plans to sell Miwani and Chemelil sugar factories. They said the Executive had not consulted MPs over the matter.
“Moving the sugar industry is like allowing the level of poverty to increase in many households in Western region who depend entirely on sugar farming,” said K’Oyoo.
Ugenya MP David Ochieng’ says
The government should instead introduce efficient farming methods that would enhance production of sugar in the region.
Awendo MP Jared Opiyo, who is the chairman of the Caucus, says sugarcane farming cannot be moved to a certain region as it is the economic hub of Western Kenya.
He says the group is planning to introduce a Motion in Parliament that will make sugarcane profitable to investors and farmers.
But Mombasa Senator Hassan Omar says there is nothing wrong with relocating sugarcane farming to the Coast if it has the right climate and soils. Omar says the region’s potential should be exploited for the benefit of local residents and Kenyans in general.
Koskei had indicated earlier that farmers who opt to continue with sugar production in Western Kenya would do so for processing companies involved in high-end sugar products, not table sugar.
Opiyo, however, proposes that to privatise the factories, the national government must transfer the assets to the county governments, who will arrange for the privatisation to be inclusive.
The government, the MPs say, can also look at options to enable the country operate without the Comesa safeguards, among them by ensuring sugar factories diversify to ethanol distillation and power co-generation.
Most sugar factories in the Western Kenya region are heavily involved in social corporate responsibility activities. Some of these activities range from developing and maintaining feeder roads for easy transportation of harvested cane from farms to the factories. The companies also sponsor schools — both primary and secondary — and at times pay school fees for bright students from poor backgrounds.
Nzoia Sugar Company for example sponsors 48 primary schools and 18 secondary schools within its zone, at times developing classrooms, and paying fees for some of the students. The company also sponsors six orphanages in the zone.
Mumias Sugar, which runs Mumias Central Primary School, one of the best in the country, is also the main sponsor of Kenyan Premier-League side AFC Leopards, a community club with its support base in Western. The company also supports Western Bulls, a rugby team that is making an impact nationally and regionally.
Chemeli Sugar Company in Nyanza province sponsors Chemelil Academy, a mixed boarding secondary school, while South Nyanza Sugar Company (Sony) sponsors Sony Complex, a primary school.
Chemelil also sponsors a club in the Kenyan Premier League.
Mumias says it is planning to venture into the dairy industry to boost its revenue streams in the coming days. The firm is currently reeling from a poor run of its core business hurt by low sales and increased production costs.