State-owned sugar millers have been exempted from government plans to privatise loss-making institutions.
President William Ruto yesterday said the government was committed to reviving the struggling sugar industry even as he urged MPs to hasten the amendment to the law allowing the writing off of Sh117 billion debts accrued by the millers.
Speaking during a thanksgiving service in Kanduyi constituency, Bungoma county, the President said the privatisation option for the State-owned millers has been dropped while debts will be written off among other long-term plans for the industry.
“Don’t expect to hear that some Asians are buying your companies. You will not hear of Rai,” he said in reference to sugar mogul Jaswant Sign Rai who was allegedly abducted by unknown people last week.
Rai owns the Kabras Sugar factory, Kanyara Sugar in Uganda and has a stake in West Kenya Sugar Millers.
“I want you to know that it will not be privatised, land will remain property to Kenyans but we will plan to ensure it benefits Kenyans.
We have spent more than Sh4 billion that goes into the drain but this time we want to do it differently,” Ruto said.
“Our five sugar companies have debts of more than Sh60 billion which needs to be written off. We will take it to MPs to do a complete write-off because previously they did half of it,” Ruto said.
“The initial plan to privatise state-owned millers will not happen, we will not let our companies continue sinking into more debts. It’s now up to our MPs to approve the waiver on the debts owed by sugar companies,” Ruto said.
The exchequer has already written to Parliament seeking the approval to write off loans owed to the government and the Kenya Sugar Board amounting to Sh65.8 billion, and tax penalties amounting to Sh50.14 billion.
Back on track
The Head of State urged lawmakers to approve the waiver saying it’s high time the factories get back on track.
President Ruto is in Western region on a five-day working tour and is also set to hold a cabinet meeting at the Kakamega State Lounge tomorrow.
Last month the government locked out private and government-owned millers from being part of the importation deal of 100,000 metric tonnes of sugar.
Agriculture and Livestock Cabinet Secretary Mithika Linturi revealed that only private individuals will be allowed to import the 100, 200 metric tonnes of sugar during a four-month importation window.
The importation is meant to stabilise the country’s sugar industry, which has seen prices hit historic highs as local millers fail to meet local needs.
Kenya has a capacity to produce 600,000 tonnes of sugar every year, with a deficit of 200,000 tonnes, which are usually sourced outside.
The Government’s target to import the commodity from the Common Market for Eastern and Southern Africa (COMESA) has proved futile amid scarcity, with other countries with surplus refusing to sell their own.
The president said he had elaborated plans for the county as its votes propelled him into leadership.
President said his government was going to put up ten modern markets across the county to improve its infrastructure.
‘’When I was campaigning, I promised to improve the welfare of Mama Mboga’s by improving there working places,” he said.
He said the markets to be put up include, Chwele, Mateka, Naitiri, Chepkube, Webuye, Malakisi, Bukembe, Cheptais and two others to be considered.
