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Thursday, November 7, 2013

Sugar firm on the spot over licence

A West Kenya Sugar truck in Kakamega town transports cane to the miller’s factory. West Kenya Sugar Company was Thursday accused of violating its licence when Kenya Sugar Board officials appeared before the parliamentary committee on agriculture. PHOTO/FILE

A West Kenya Sugar truck in Kakamega town transports cane to the miller’s factory. West Kenya Sugar Company was Thursday accused of violating its licence when Kenya Sugar Board officials appeared before the parliamentary committee on agriculture. PHOTO/FILE 
By Nation Correspondent
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West Kenya Sugar Company was Thursday accused of violating its licence when Kenya Sugar Board officials appeared before the parliamentary committee on agriculture.

Board chief executive Rosemary M’kok said the firm was registered to start work towards establishing a mill and developing cane.

“Registration is not an authority to start operations,” Ms M’kok said. “They have no authority to harvest cane.”

She said West Kenya moved to court to challenge the matter after the regulators held a meeting with millers in Western Kenya region to revoke its licence.










“We cannot act on the matter currently because West Kenya took us to court for unfair licensing before we could revoke its licence,” Ms Mkok added.

M’kok said the cane industry was facing a tough time that had put Kenya’s cane production rate at $1,000/tonne. This is way lower than their competitors such as Swaziland and North Sudan that produce cane at $350/tonne.

The Agriculture committee hit out at the sugar board saying this is one of the issues threatening to cripple the industry.

“The sugar board should stop licensing factories until the industry crisis is resolved,” said Mr Adan Mohamed Noor, the committee chair. “We are way behind in privatisation even as the expiry of Comesa safeguards in February next year loom.”

Squabbles over cane harvesting zones have put the industry at risk as a Comesa safeguard deadline draws nearer, with Mumias Sugar Company claiming to have lost Sh1.26 billion through cane poaching.

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