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MPs laud debt relief plan for sugar firms

MPs laud debt relief plan for sugar firms
Kenyan Parliament. PHOTO/Courtesy
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Member of Parliament have supported the government’s pledge to write off debts amounting to Sh117.64 billion owed by five State-owned sugar companies.

John Makali (Kanduyi), James Onyango K’Oyoo (Muhoroni) and Walter Owino (Awendo) said the move would revive companies that have been non-performing for a long time.

Speaking separately, they also called for an end to sugar importation.

The MPs stressed the need to pay arrears owed cane farmers and employees of State-owned firms.

They highlighted the dire situation in Nzoia Sugar Company despite it being the largest nucleus estate, saying farmers had not been paid for the last 10 months and workers for 11 months.

The leaders were speaking before the Joint Committee of Agriculture and Livestock and Finance and Planning which has been receiving views regarding the revival and commercialisation of State-owned sugar companies.

The committee is expected to table its report to the House on Thursday during a special sitting that has been called by Speaker Moses Wetang’ula.

Treasury has sought Parliament’s node to revive Nzoia, Chemelil, Miwani (in receivership), Muhoroni (in receivership) and South Nyanza sugar companies.

Of the Sh117.64 billion, Sh65.77 billion relates to loans owed by the five mills to the government and Kenya Sugar Board/commodities fund, Sh50.144 billion relates to tax penalties and interests as at June 30 this year while Sh1.71 billion relates to balances owed to farmers.

The five companies owe substantial amounts of money to farmers, suppliers and employees.

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