Mumias Sugar has issued Ksh150 million bonus to cane farmers as leaders from the region challenged the government to fast-tract reforms in the entire industry to save Kenya from using foreign currency to import the sweetener.
Mumias Sugar, which resumed full operations a year ago, had been dogged by numerous court cases filed by West Kenya Sugar Company Chairman Jaswant Singh Rai blocking the lease of Mumias Sugar to his brother Sarbi Singh Rai of Sarrai Group.Some of the recent reforms include the Sugar Act 2022, a law enabling the re-establishment of the Kenya Sugar Board, the creation of the Kenya Sugar Research and Training Institute, and the implementation of the Sugar Development Levy.Among the many issues at play include cane poaching, and strengthening the outgrowers’ association to protect farmers.
Noting the industry had a potential to produce surplus for export, leaders accompanying President William Ruto for the issuance of the inaugural bonus tasked Ministry of Agriculture to forward the Sugar Regulation Bill to the parliament within one month and also reign in on cartels in the industry flooding the market with cheap sugar imports.
The markets are optimistic that recent legislative steps will strengthen the industry by boosting production, enhance milling efficiency, align capacity with cane supply, promote value addition, and provide critical funding to benefit all stakeholders.
The Kenya Sugar Board will regulate, develop, and promote the sugar industry, coordinate stakeholders, participate in policy-making, and collaborate with government and research institutions. It will also oversee sugar trade, advise growers, regulate pricing, license mills, and conduct market surveillance.
“By limiting the number of new factories, state will address the issue of cane poaching that has denied our millers of the much needed raw material,” noted Cooperatives Cabinet Secretary Wycliffe Oparanya. “With a record 832,000 tonnes of sugar produced last year, Kenya is on course attaining surplus production and commence regional exports by 2026,” noted President William Ruto.
Ruto assured stakeholders that the government will deliver one million bags of subsidized fertilizer to farmers this year to boost output.