Kenya: President Ruto promises to revive sugar industry by leasing state-owned sugar mills
President William Ruto has pledged to revamp the sugar industry by opting to lease state-owned sugar mills instead of pursuing privatization, reported Standard media.
Speaking in Kakamega on Wednesday during the launch of the county’s International Investment Conference (KAIICO), Ruto stressed the necessity for a comprehensive overhaul in the management of the sugar sub-sector.
Highlighting the stagnant management practices prevalent in the sugar industry for the past two decades, Ruto stated, “We are going to change the way the industry is managed. We have danced with this sector for the last 25 years.” He clarified that his administration’s approach involves leasing the sugar mills to private investors, allowing them to infuse capital into the sector.
Ruto further articulated, “I am announcing here that we are not going to privatize our industry but to lease the sugar millers so that private investors can pump in money and we are going to terminate the contract if we feel things are not going the way they are supposed to go in helping the farmer, factory, and country.”
Emphasizing the imperative to curtail sugar imports and bolster domestic production, Ruto underscored the commitment to bolster the cane development program. He stressed, “Our legislators must listen carefully, we are going to pump a lot of resources into the cane development program so that our farmers can grow enough sugarcane for us, as a country to produce enough sugar.”
Ruto asserted that, in alignment with other sectors, sugarcane farmers will receive year-end bonuses from sugar millers. He admonished any attempts to obstruct the progress of sugarcane farmers, declaring, “We must free the sugarcane farmers from a few people taking this sector hostage.”
In a bid to address financial challenges within the sugar industry, the government has allocated Sh300 million in the upcoming supplementary budget to settle arrears owed by the Nzoia sugar factory. Additionally, West Kenya Sugar Company has announced a Sh1.2 billion investment in cane development to ensure an ample supply of raw materials.
During the ongoing Kakamega International Investment Conference at MMUST, West Kenya Sugar Company revealed its investment of Sh900 million in out-grower farms, resulting in the development of 33,000 acres under sugarcane across over ten counties. Oscar Shiverenje of West Kenya Sugar Company affirmed their commitment to supporting farmers.
Source Link : https://www.chinimandi.com/kenya-president-ruto-promises-to-revive-sugar-industry-by-leasing-state-owned-sugar-mills/
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