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PS Ronoh-Kenya : Sugar sector back on track after factory Leasing deal

Kenya’s government says 80% of workers in leased public sugar mills have been retained as reforms aim to revive the debt-hit sector, improve cane payments and boost efficiency. Meanwhile, over 2.5 million subsidised fertiliser bags have been distributed, supporting farmers ahead of the long rains planting season.

The government has announced that 80 per cent of workers in public sugar factories have been absorbed by new lease operators as part of ongoing efforts to revive the struggling sector.

The development follows the leasing of four state-owned sugar mills, a key reform the government says is already improving operations, stabilising cane payments and restoring confidence in an industry long burdened by heavy debts, inefficiencies and delayed payments to farmers and staff.

“Eighty per cent of the workers in those factories have been absorbed by the new lease operators,” Agriculture Principal Secretary Paul Ronoh revealed on Wednesday.

Ronoh added that the government is working to address salary concerns to ensure that the workers receive their dues as early as possible.

According to the PS, the government has engaged labour unions and committed to clearing long-standing obligations owed to employees.

“We have met with the union, and we will keep our promise as the government to pay the sugar workers their salary arrears, including other related employee dues,” he said.

Ronoh said the reforms are part of a broader strategy to breathe life back into the sugar sector and improve its financial and operational performance.

He noted that the leasing programme is already translating into improved returns for farmers.

“We have managed to lease out the four sugar mills, and as we talk now, the farmers are getting better prices for sugarcane,” he said.

The PS said the new management framework is intended to improve efficiency, attract investment and ensure timely payments to farmers, while safeguarding jobs and enhancing workers’ welfare.

“The intention is to make the sugar sector sustainable so that farmers earn more, factories operate efficiently, and workers enjoy job security,” Ronoh said, expressing confidence that the reforms will restore stability across the value chain.

The PS spoke at the Athi River Railway Station, where he flagged off two million bags of fertiliser under the National Fertiliser Subsidy Programme ahead of the long rains planting season.

Ronoh said the government has targeted six million bags for the long rains and another six million bags for the short rains, with close to four million bags already in circulation across the country.

“Already over 2.5 million bags of fertiliser have been collected from National Cereals and Produce Board stores,” he said.

Since the launch of the subsidy programme, the government has reached more than seven million farmers and distributed close to 30 million bags of fertiliser, at a cost of over Sh52 billion.

“That is a huge investment in terms of resources, coordination and time, and I want to thank farmers for coming out in large numbers to support the programme,” Ronoh said.

He expressed optimism that continued investment in farm inputs will boost production and strengthen national food security.

“I have no doubt that within the next two to three years, Kenya will be a net exporter of food. As we speak, we already have enough maize in our stores,” he said.

To improve access, Ronoh said the government has opened 357 NCPB outlets across the country and plans to increase the number to bring fertiliser closer to farmers.

The consignment flagged off at Athi River was loaded onto 18 railway wagons destined for Kitale, Eldoret and Moi’s Bridge, and is expected to arrive by Sunday. The rail deliveries complement nearly 200 trucks currently transporting fertiliser to various regions.

At the last mile, the programme is also creating opportunities for young people, with about 50,000 motorcycles being used to deliver fertiliser directly to farmers in remote areas.

Ronoh assured farmers that the fertiliser supplied under the subsidy programme is of high quality and urged those yet to register to work with county officials to ensure they access the inputs in time for the planting season.

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Source : The Star

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