Munya appoints team to guide leasing of State-owned sugar firms

The government has established a team to guide the process of leasing five State-owned sugar mills as it seeks to re-energise the sector, which is currently on its knees.

Agriculture Cabinet Secretary Peter Munya, in a gazette notice, indicated that the interim management committee will be in place until the five sugar factories are handed over to successful bidders.

The team to be chaired by Agriculture Cabinet Administrative Secretary Anne Nyaga draws membership from the management of the five mills, Agriculture and Food Authority (AFA) director-general Anthony Muriithi and head of sugar directorate Ms Rosemary Owino, who will be the secretary of the committee.

Mr Munya incorporated the joint receivers of Muhoroni and Miwani Sugar companies, Mr Francis Ooko and Harun Kirui.

Also considered is Chemelil managing director Gabriel Nyangweso, Stephen Ligawa of Sony Sugar and the Nzoia counterpart Mr Michael Wanjala.

"Their specific roles will include to receive, review and make recommendations on issues related to the specific sugar mills," he said.

Job contracts

The issues will include job contracts, payment of wages, management of suppliers, forward sales and other credit arrangements, staff and grower arrears as well as security arrangements.

They will also make recommendations on the general operations of the mills regarding short-term contracts.

"The committee will prepare regular reports to the Cabinet Secretary for Agriculture, recommending appropriate measures on the issues raised," the terms of reference.

AFA shall provide the requisite budget and facilitate the work of the interim committee as well as provide working space for the secretariat for the time they will be in office.

The move comes days after CS Munya revoked the appointment of board members of State-owned sugar millers as the government prepares to inject new lease of life to the struggling debt-ridden companies.

In a special gazette notice issued on Wednesday, the CS removed all the board members of Nzoia, Chemelil and Sony sugar companies.

Struggling sugar companies

Those who were ousted include Nzoia Sugar chairman Joash Wamang’oli, businessman Zedekiah Bundotich (popularly known as Buzeki) of Chemelil and their counterpart from Sony Sugar Mr Owino Likowa. 

The process of leasing the three mills kicked off on August 4 when 29 companies submitted their interest to lease the five struggling sugar companies.

Interim Head of Horticulture Crops Development Benjamin Tito, who chairs a technical committee of officials drawn from various agencies under AFA, led the exercise of opening of the bids at their headquarters Wednesday.

“The next stage that will follow will be evaluation of the bids after which those ones that will qualify will be asked to present their proposal from which we shall pick the winners,” Mr Tito said.

mong others, those who have expressed interest to take over the management of the five troubled public firms include two firms linked to tycoon Jaswant Rai, West Kenya Sugar Company and Sukari Industries.

Additional reporting by Dickens Wasonga.