Stakeholders in the sugar industry will soon have an opportunity to give their views on the proposal to lease five State-owned sugar mills, Agriculture Cabinet Administrative Secretary Anne Nyaga has said.
She indicated that the government is working on a modality that will ensure all critical stakeholders give their input before implementation of the ambitious project, which is expected to turn around the fortunes of the troubled sector.
“The timetable for the programme is yet to be released and we will make it public to enable us incorporate all the views of the people and ensure a smooth working relationship between the new investors and the locals,” she said on Tuesday.
CAS Nyaga, who spoke while on an inspection tour of Muhoroni Sugar Company, said the ministry has embarked on an initiative to establish the status of the five mills before conclusion of the leasing exercise.
“Other than Muhoroni, I will also visit Miwani, Chemelil, and Sony Sugar which have been earmarked for a leasehold period of 25 years,” she said.
She indicated that the government will continue to support the companies which are faced with a myriad of setbacks, including dilapidated machinery and poor infrastructure.
Despite going through numerous challenges, joint receiver manager for Miwani and Muhoroni Francis Ooko said that they are able to sustain the operations of Muhoroni which was put under receivership in 2000.
“I am happy to report that the new investor for Muhoroni will not have to pump in more funds to revive the company which is currently operating on a 24-hour basis,” he said.
However, he raised concerns that rains and a poor road infrastructure have caused over 24,000 tonnes of Miwani nucleus cane to continue lying unharvested months after attaining maturity.
Handing over of the mills to private sector players is expected to facilitate the turnaround of the factories to profitability through modernisation and efficient management which will, in effect, enhance competitiveness in Kenya, EAC, Comesa and the global sugar market.
Successful financiers are expected to lease, redevelop and operate the sugar complexes at sufficient processing capacities to support diversification into co-generation of export power, production of bioethanol and allied coproducts.
Efficient management of the factories is expected to play a significant role in the country’s socio-economic development, through food security, employment creation, rural development and as a source of livelihood for over 8 million Kenyans.
The sugar sector is also a source of income for over 400,000 smallholder farmers who supply over 90 per cent of the milled cane.
