A peek into Ruto’s bag of goodies for Nyanza residents
By Kepher Otieno, January 16, 2023Millers and farmers in the once thriving Nyanza sugar belt have reason to smile following the pledge by President William Ruto to help unlock the potential of the sugar industry and players along the value chain.
Ruto promised to revive the ailing sugar industry and implement the Sugar Task Force Report recommendation to lease the struggling State-owned mills.
He said he the government hopes the move will bring the once booming sector back to life and end years of “economic strangulation” of cane farmers who had heavily invested in the industry.
Western region, of which Nyanza sugar belt is part of, has been the highest producer of sugar and the crop has helped many families meet their financial obligations including paying fees for their children. Ruto who was on a two-day working tour in the region commissioned a number of development projects and promised to initiate and launch more soon when he returns.
Proposed leasing
Last year, it is recalled that retired President Uhuru Kenyatta’s Cabinet approved the proposed leasing of five state-owned sugar factories for at least 20 years. The leasing was to be done through the transfer of the Right of Use (ROU) of each factory to the lessee on an “as is where is” basis.
The RoU was to ensure a firm commitment that the lessee will re-develop and operate the firms to meet the government’s objective of higher farmers’ income.
This include making profits through diversification into the production of ethanol and co-generation of electricity using bagasse- one of the sugar by-products. Five factories marked for leasing in Western Kenya are, South Nyanza Sugar Company Ltd (SONY), Chemelil Sugar Company, and Miwani Sugar Company (1989, under receivership), Muhoroni Sugar Company and Nzoia Sugar Company Ltd.
President Ruto who was part of the Cabinet that approved the proposed leasing then told Nyanza leaders that the idea was good to pursue to fruition. “We are not going to overlook the decision by the sugar Task and watch cane farmers suffer. We must implement a workable solution- Leasing it is,’’ he said.
Sources at the State lodge meeting between Nyanza leaders and the President revealed that he was firmly committed to leasing the sugar factories soon. Equally in a fresh bid to make the sugar factories attractive to leaseholders, Ruto promised to follow up on the status of the Cabinet-approved debt write-offs. The sugar factories have a combined share of 30 per cent of the sugar industry market. The potential for an increase is significant. The government, he told the Nyanza leaders from the sugar-growing areas, will invite investors with experience in the global sugar industry.
Cane farmers representatives in Nyanza were elated by the news revealed to them by the leaders in attendance with Ezra Okoth, Atyang Atyang, Richard Ogendo expressing delight at the re-assurance by the Head of State.
“We now want the President to move with speed to fast-track the lease of the factories,’’ said Atyang.
But it is not the sugar industry alone counting their blessings. The President also promised to see several roads tarmacked in Migori, Homa Bay, Kisumu, and Siaya counties. He vowed to carry on with the projects started by the former President. He also promised to complete Mamboleo –Kakamega tarmac road, Ahero interchange, and Muhoroni Mamboleo roads among many others, and multi-billion shilling water supplies in Siaya.
Some of the identified roads are currently impassible and Ruto promised to see them tarmacked to improve rural markets’ produce to urban town linkages. Suba South and North development forum Chairman Bernard Okebe was happy that roads in the region that suffered neglect over the years would be tarmacked.
Improving mining
“We want to thank the President for promising to tarmac Sindo-Gwassi road in a deplorable state whose tarmacking stalled years ago,’’ he said.
Other notable projects, he assured of tackling include improving mining in Migori County and building a fish banda in Homa Bay County at a cost of Sh345 million.
This includes the multi-billion shilling 5,000 low-cost affordable housing projects spread in the municipalities of Homa Bay town, Mbita, Oyugis, and Kendu Bay.
President Ruto also visited visit the Jaramogi Oginga Odinga University of Science and Technology (JOOUST) where he launched the Blue Economy Research Hub.
Among the projects that are already in place is the Sericulture project which is a joint venture between a private investor, Silk Origin limited and Bondo University.