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Enact report on revival of millers

Enact report on revival of millers
Maize silo. PHOTO/Print

Hundreds of families that were previously dependent on growing of sugarcane in Nyanza and Western Kenya have sunk into poverty due to challenges facing cultivation of the crop.  It is a painful status for a sector that has been the mainstay of Western Kenya economy.

  Millers using obsolete machinery are operating under capacity and subsequently unable to pay farmers. 

Studies on the sugar crisis show that while mills are operating under capacity and are, therefore unable to satisfy the national sugar demand, consumers have access to the commodity at lower prices mainly sourced from outside. 

Local millers are rendered unable to compete with cheaper sugar imported illegally by a deeply rooted cartel that is the main cause of the crisis in the sector. According to Kenya Sugar Board, the major challenge in the country’s domestic market is the fact that locally produced sugar is more expensive and yet it does not satisfy the local demand making importation a highly lucrative business. Public-owned millers are currently sagging under the heavy burden of debt owed to farmers, suppliers, banks and the government.

Efforts to revive the sector have always been overshadowed by parochial political appetites and endemic corruption. Monies sunk to revive the millers go into the pockets of cartels.

Private millers have been accused of smuggling and repackaging sugar for sale in the local market. Recommendations by a taskforce on revival of the industry are yet to be implemented. Political elite has routinely given efforts to revamp the sector lip-service even as farmers continue to suffer. The push for privatisation has already hit headwinds.

President William Ruto has announced that the government will write-off the debts. This is a welcome move but we encourage responsible authorities to implement the findings of the task force.

In addition to the waiver of debts, the taskforce recommended enhancement of marketing and trade, coordination of importation, end of smuggling and dumping as well as better packaging of sugar products.

The millers should be helped upgrade outdated machinery and the government should review and enact a better regulation framework for the industry. 

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