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Sweet relief for sugar farmers as lawmakers agree on reforms
Principal Secretary, State Department for Investment, Abubakar Hassan Abubakar, Richard Omelu, EPZA Chief Executive and Richard Cheruiyot, EPZA chair during the EPZA Strategic Plan 2024 - 2028 Stakeholders Validation workshop in Nairobi. EPZA’s mandate is to promote and facilitate export-oriented investments and to develop an enabling environment for such investments
Principal Secretary, State Department for Investment, Abubakar Hassan Abubakar, Richard Omelu, EPZA Chief Executive and Richard Cheruiyot, EPZA chair during the EPZA Strategic Plan 2024 - 2028 Stakeholders Validation workshop in Nairobi. EPZA’s mandate is to promote and facilitate export-oriented investments and to develop an enabling environment for such investments. PHOTO/Print

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Lawmakers have finally ended the impasse over a draft law aimed at ensuring better regulation of the troubled sugar sector, allowing for its passage and Presidential assent. The move comes after MPs and senators agreed on contentious amendments to the Sugar Bill 2022.

With presidential assent as the next step, the Bill’s potential to reshape the sector is generating high hopes among farmers for a future with better regulatory support and sustainable growth.

A key component of the Bill is the creation of the Kenya Sugar Board (KSB), which will take over regulatory duties from the Agriculture and Food Authority (AFA), allowing for focused oversight and tailored reforms.

Kenya Sugar Directorate CEO Jude Chesire said the move is anticipated to introduce a more specialised approach to the challenges faced by the sugar sector.

“The Bill proposes the collection of a sugar development levy, with portions allocated to factory development, research, and infrastructural improvements in sugarcane-producing regions. It’s good for us,’’ he said. The board’s establishment, along with a proposed 4 per cent levy on sugar sales, aims to create funding for crucial areas like factory upgrades, research, and infrastructure improvements in sugar-producing regions.

Farmers are particularly optimistic about the bill’s plans for improved access to loans, which would help them increase production and adopt better farming practices.  Chesire believes that the availability of financial resources will be transformative, allowing farmers to overcome traditional obstacles to productivity.  This optimism is further fuelled by additional support mechanisms, such as a sugar development levy that allocates funds to support infrastructure in the cane-growing areas and bolster factory capacities.

The Bill, sponsored by Navakholo MP Emmanuel Wangwe, also imposes stricter rules on sugar imports, requiring proof of local shortages before any import is permitted.  This is a crucial measure to protect local farmers from being undercut by cheaper imports, which have flooded the market in recent years, jeopardizing the livelihoods of Kenyan farmers.

Local industry

Severe penalties, including fines up to Sh10 million or imprisonment, underscore the importance placed on safeguarding the local industry.

Kenya National Sugarcane Federation officials, including Chairman Ezra Okoth and Killion Osur, emphasise that these reforms are essential to addressing long-standing issues like pricing transparency and infrastructural decay, which have hindered the industry’s potential. Farmers are hopeful that the President’s assent will provide the stability and support necessary to revitalize their operations.

“If the President assents to the bill, it could mark a transformative shift for the industry,” Osur remarked, signalling the Bill’s potential to empower farmers and drive sector-wide growth.

The bill also tackles structural issues like zoning and road maintenance, which are essential to ensuring that farmers can transport their produce efficiently.

President William Ruto has pledged his support for these reforms, promising during a recent visit to the sugar belt that the bill would be passed before year-end.

His assurance aligns with the farmers’ vision of an industry that can compete fairly while being less dependent on imported sugar, ultimately retaining the sector’s economic benefits within Kenya.

Financially stable

Moreover, the bill includes provisions to modernize local sugar factories, making them more competitive and financially stable. This involves funding for factory upgrades and debt management to improve operational efficiency.

These measures are crucial, as the lack of modern infrastructure has long plagued Kenyan factories, hampering productivity and profitability. Revitalising the sugar industry could lead to local revenue growth, increased job opportunities, and economic prosperity in cane-growing regions.

The Bill’s support for smallholder farmers is another significant aspect, offering mechanisms to ensure fair compensation through transparent pricing standards.

By reducing the potential for millers to exploit farmers, the legislation aims to build trust within the industry, helping farmers to plan and grow their operations sustainably. In the long term, the bill’s emphasis on research funding is expected to drive advances in crop resilience and yield, which are essential for sustaining growth in an increasingly competitive global market.

By channelling resources into development projects and innovation, Kenya’s sugar industry could see improvements in both crop quality and productivity, ultimately contributing to the sector’s resilience.

Farmers and industry stakeholders alike are watching closely as the bill awaits presidential assent, hopeful that these legislative changes will bring lasting stability and prosperity to Kenya’s sugar industry. If fully implemented, the bill has the potential to transform the sector, empowering local producers and reducing the country’s dependence on imports.

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