Millers threaten to shut down over court order to increase cane prices
Kenyan sugar millers are under threat of closure following a court order to raise sugarcane buying prices. The court’s April 24 ruling mandates a reversion to the previous rate of Sh5,900 per tonne, up from the current Sh5,100. The Kenya Sugar Manufacturers Association (KSMA) argues that this move endangers both millers and related businesses. KSMA Secretary Joyce Opondo condemned the order, calling it a violation of trade fundamentals and a detriment to industry livelihoods.
Sugar millers have threatened to shut down following a court order to increase sugarcane buying prices.
The court on April 24, 2014, ordered millers to revert to the previous rate of Sh5,900 per tonne up from the current rate of Sh5,100 per tonne.
Kenya Sugar Manufacturers Association (KSMA) said the order that was made ex-parte would jeopardize the economic survival and sustainability of sugar factories and related businesses.
“To force millers to revert to pay farmers at the old price of Sh5,900 (instead of Sh5,100) is a direct violation of our rights and basic trade fundamentals and an outright and ill-informed attempt to cripple our operations and consequently the livelihood of the very farmers and other industry dependents,” said the Association’s Secretary Joyce Opondo in a statement dated April 24, 2024.
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