Cane farmers have asked Senators to ratify proposals to write off the sugar industry decades-old Sh117 billion debts.

They lauded members of the National Assembly for approving the writing off of the loans on the ground that all the five State-owned sugar companies are faced with dire financial difficulties thus resulting in some failing to undertake annual machinery maintenance for many years.

Kenya National Federation of Sugarcane farmers secretary General Ezra Okothn said the ball now is in the court of the Senators who will have to decide whether to endorse the write off of the debts or not and asked them to repeat the National Assembly’s move.

Ratify the proposals

“We want to see the MPs ratify the proposals so that cane farmers can be paid and all industry debts settled,” he said. As things stand, he added, the Cabinet endorsement of the debts to be written off, still remains just an ink on the paper.

Okoth said farmers want to see more practical solutions effected in the management of the sugar industry, adding that they were keen on seeing the sector revitalised.

“Once the legislative processes and legal processes are concluded, farmers expect to see new management at the mills,” he stated and asked the government to immediately embark on the divestiture of the firms, once the MPs ratify the write off.

Over the years, the proposed write off of the debts has been a “thorny” issue, with successive authority overlooking them. But now, the farmers have a reason to smile following the fresh and sustained effort to revitalise the mills.

President William Ruto has been keen on waiving the debts to revive the miller’s daily operations. With the assurance to farmers that all will be well it is just a matter of time before the sugar industry regains its lost glory.

The farmers hoped that when the debts were settled, the State would embark on listing the firms for leasing. This is what was proposed in the Sugar Task Force Report during the reigns of Mwangi Kiunjuri and Peter Munya.

The two former cabinet secretaries initiated the plans for a stakeholder’s forum that led to suggestions of radical industry proposals.

Top on the list, was the call to have the factories leased for at least 20 years. This was after many farmers rejected plans to auction the firms to new investors. Okoth wants the State to immediately declare bids for strategic investors after Parliament is done with their part.

The Senate sits before the weekend to look at the solutions to the Sugar industry woes contained in the Sugar Bill, 2023. The sugar firms marked for revitalisation are Mumias, Sony, Chemelil, Nzoia and Muhoroni sugar factories.