Pay Cane Farmers and Sugar Company Employees Their Arrears: Joint Committee Told
Members of the County Assemblies of Kisumu and Migori and Members of Parliament from Muhoroni, Awendo and Kanduyi have called on the Committees of Agriculture and Livestock and Finance and National Planning to expedite payment of arrears owed to cane farmers and sugar factory workers.
The National Assembly Committee on Agriculture and Livestock and Committee on Finance and National Planning, today met with stakeholders regarding the revival and commercialization of State-Owned Sugar Companies.
“The financial woes of these state-owned sugar companies are staggering, with a collective debt reaching Kshs. 128.06 Billion as of June 30, 2023. The debt has been a major impediment to the industry’s growth and sustainability, “said Molo MP, Hon. Kuria Kimani.
Under the leadership of Hon. Dr. John Mutunga and Hon. Kuria Kimani, legislators converged in Kisumu to engage with stakeholders to address the pressing issue of reviving and commercializing state-owned sugar companies.
Regarding land ownership, Hon. Kibagendi Osoro emphasized the importance of resolving issues surrounding community land and divesture of land , stating, “Land is a very emotive issue. This was community land that was donated to the government for some of these factories.”
Proposals to lease community-owned land for sugar cane farming gained traction, with Hon. Justice Kemei and Hon. Gabriel Kag’ombe arguing that this approach could help boost yields and reduce the burden on smallholder farmers.
Kisumu and Migori County, MCAs also voiced their support for the leasing of land, rather than the selling of factory land. The MCAs oppose the merger of factories as proposed by National Treasury in their memorandum, citing concerns that it will create monopolies and stifle competition. Instead, they suggest developing a formula for leasing land from farmers with a guaranteed percentage for farmers.
On the other hand, Hon. John Makali (Kanduyi), Hon. James K’Oyoo (Muhoroni) and Hon. Walter Owino (Awendo) support writing off debt and tax penalties of state owned sugar companies citing a clean late will provide an opportunity for the companies to commercialize without debt.
The Lawmakers from sugar growing areas also called for an end to sugar importation and the creation of protections against imports.
Leaders from sugar growing areas further stressed the need to pay arrears owed to cane farmers and employees of state-owned sugar companies highlighting the dire the case of Nzoia Sugar Company, where farmers have not been paid for the last 10 months and workers for 11 months. Nzoia has the largest nucleus estate which is totally underutilized due to serious cases of mismanagement.
Members of the Joint Committee are expected to meet with farmers representatives, the management of the five public-owned sugar mills, including Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (in receivership), Muhoroni Sugar Company (in receivership), and South Nyanza Sugar Company (SONY) and the Competition Authority of Kenya.