Keynote Logistics Limited gets back licence to operate

President Uhuru Kenyatta with Migori Governor Okoth Obado at Sony Sugar Company in Migori County on September 8, 2014. PHOTO | PSCU 

In Summary

• The revelation comes against the background of intended sale of 51 per cent stake in five sugar mills to strategic investors.
• This is intended to enable the firms to be competitive before opening up of imports from Comesa in February.

By NATION CORRESPONDENT
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Leaders from Western Kenya have been accused of frustrating efforts to have farmers participate in privatisation of sugar mills.

A former Minister for Co-operatives Joseph Nyagah in a book about his tenure, says politicians around Sony, Awendo, Chemelil and Muhoroni were reluctant to mobilise local people to benefit from the planned sale.

In the book — An African Minister’s Lessons For Co-operatives — Mr Nyagah says his efforts to organise residents through elected leaders to buy into the companies through investment saccos were frustrated.

“I was terribly disappointed that despite my efforts, only some MPs from these two regions showed support. Very few turned up for meetings that we would hold with farmers.

“It angered me that some of these leaders benefited in keeping their electorates perpetually poor and exploited their vulnerability to remain in power, being re-elected again and again,” he says.

SALE TO INVESTORS

The revelation comes against the background of intended sale of 51 per cent stake in five sugar mills to strategic investors announced in April by Agriculture Principal Secretary Sicily Kariuki.

This is intended to enable the firms to be competitive before opening up of imports from Comesa in February.

Kenya was granted a one-year extension of safeguards that limit imports from the trading bloc in February this year to allow the country improve fortunes of the sugar industry.

According to Ms Kariuki, the stake would go to strategic investors while 30 per cent is reserved for farmers.

The remaining 19 per cent in Sony, Chemelil, Nzoia, Muhoroni and Miwani companies would be floated at NSE through an initial public offering once the factories are profitable.

Mr Nyagah says he was organising farmers to buy 35 per cent stake in these companies to avoid political problems similar to those that followed privatisation of Mumias Sugar Company.

Growers bought shares through Nairobi Securities Exchange and sold them immediately the prices rose leaving ownership of the firm in the hands of other investors