A tractor ferries cane at the Mumias Sugar Company. Photo/FILE
Nation Media Group
A technical team from the Common Market for East
and Southern Africa (Comesa) is in the country to assess Kenya’s
progress in making sugar production more efficient.
The team will evaluate whether Kenya has fulfilled
conditions set by the bloc before the council of ministers decides
whether or not to extend restrictions on entry of tax-free sugar that
have been in force for a decade.
“A technical team is here to assess our need for
extension so that when we make our formal request, they will understand
our situation,” said Agriculture Cabinet Secretary Felix Koskei.
The government is seeking a one- year extension of the safeguards which lapse at the end of February.
Some of the conditions that Kenya was advised to
meet included lowering the cost of production, privatisation of
State-owned millers and changing of the cane-selling formula.
This is the fourth time Kenya is seeking an
extension of the limits on duty free quotas since 2004 despite dithering
on reforms like privatisation which would have made millers stand up
better to competition.
Kenya Sugar Board (KSB) Chief executive officer
Rosemary M’kok said privatisation had stalled because of new laws that
were being put in place to regulate the sector.
“The Finance, Planning and Trade Committee in
January 2013 delayed privatisation until such a time when all
legislation affecting agriculture and county governments have been put
in place,” said Ms M’kok.
The resultant law — Agriculture Food and Fish
Authority and Crops Acts — will be enforced on Friday, January 24,
paving the way for the process.
The sugar mills lined up for sale are Nzoia, which
is insolvent to the tune of Sh16 billion, Chemilil, Muhoroni, Miwani
and Sony Sugar.
Ms M’Kok said two pilot payment systems were
commissioned last year and are being collated to determine which one to
use across the factories.
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