‘State-owned sugar companies have collective debt of Ksh128B’ – Molo MP Kuria Kimani
By Francis Muli, September 6, 2023State-owned sugar companies had a collective debt of over Ksh128 billion as of the end of June 2023, Molo MP Kuria Kimani has stated.
This comes even as Members of the County Assemblies of Kisumu and Migori and Members of Parliament from Muhoroni, Awendo and Kanduyi call on the Committees of Agriculture and Livestock and Finance and National Planning to push payment of arrears owed to cane farmers and sugar factory workers.
“The financial woes of these state-owned sugar companies are staggering, with a collective debt reaching Ksh128.06 billion as of June 30, 2023. The debt has been a major impediment to the industry’s growth and sustainability,“ Kimani said.
On Tuesday, September 5, 2023, the National Assembly Committee on Agriculture and Livestock and Committee on Finance and National Planning met with stakeholders in Kisumu regarding the revival and commercialization of state-owned sugar companies.
During the meeting, proposals to lease community-owned land for sugar cane farming gained traction with MPs arguing that this approach could help boost yields and reduce the burden on smallholder farmers.
MCAs who attended the meeting opposed the merger of factories as proposed by the National Treasury, saying it would create monopolies and stifle competition. Instead, they suggest developing a formula for leasing land from farmers with a guaranteed percentage for farmers.
MPs John Makali (Kanduyi), James K’Oyoo (Muhoroni) and Walter Owino (Awendo) want the debt and tax penalties owed by state-owned sugar companies written off to give an opportunity for the companies to commercialize without debt.
The lawmakers from sugar-growing areas also called for an end to sugar importation and the creation of protections against imports.