A government report has revealed shocking statistics on the state of sugar since 2005.
The most disturbing is that Mumias Sugar has lost half of its market share in the past four years.
South
Nyanza (Sony) Sugar Company has also seen its share fall by five per
cent, while Nzoia’s stake has declined by one per cent.
As
state-backed firms are on the wane, their place is being taken by
private millers whose market share has grown in the same period.
Trans Mara has expanded its share by 10 per cent, Sukari by seven per cent and Butali and Kibos by three per cent.
State-run Chemelil and Muhoroni also expanded their share by two per cent.
According to the report, in the first half of this year, Madagascar exported 24,433 tonnes to Kenya.
MADAGASCAR
“In
line with provisions of the Comesa safeguards, brown sugar is mainly
imported from Comesa and EAC while refined sugar is imported from all
over the world,” the report reads.
The government has so far issued 23 permits to brown sugar importers this year.
The data shows that Madagascar started exporting sugar to Kenya in 2009.
Over the years, however, Egypt has become a dominant player, taking advantage of its Comesa membership.
While
Egypt produces 2.1 million tonnes of sugar per year, it is also a big
importer of cheap sugar from Brazil, according to Egyptian papers
quoting a US department of agriculture report.
In total, since 2005, Egypt has exported 605,515 tonnes of brown sugar to Kenya.
Uganda, which started exporting to Kenya in 2009, has so far brought 96,000 tonnes to the country.
This year, Uganda has exported 20,969 tonnes while Tanzania has exported none.
According
to the report, Uganda was at position seven — exporting 9,998 tonnes to
Kenya in 2013, 40,188 tonnes in 2014 and 20,969 in 2015.
In
terms of the players responsible for bringing in sugar, two companies
with no prior experience in the business were dominant this year, boxing
out seasonal players.
As of July, Pillar Matt Ltd had imported 10,000 tonnes, followed by Hussaba Trading Company with 8,000 tonnes.
NOT IMPORTED ANY SUGAR
According to the data, the two companies had not imported any sugar before.
Pillar Matt is owned by James Ndung’u and Serah Wambui.
The report says Kenya imported 113,495 tonnes of sugar in 2008 while, as per July this year, it had imported 60,027 tonnes.
In 2008, Mat International imported 41,984 tonnes, accounting for 37 per cent of the total imports.
The
same company was dominant in 2009 and 2010. In 2011, the documents
state, Midland Hauliers were the leaders with 6,728 tonnes.
Midland still dominated the market in 2012, importing 16,013 tonnes of sugar.
Previous dominant player Mat International imported only 1,200 tonnes.
In 2013, Louis Dreyfus Kenya Ltd topped the scales with 24,466 tonnes.
It was also the year Mumias imported 10,000 tonnes. Midland Hauliers brought in 9,982 tonnes.
Last year, Kenya imported 62,708 tonnes of sugar, with Inland Africa Logistics Ltd bringing in 9,550 tonnes — translating to 15 per cent of the total imports.
Last year, Kenya imported 62,708 tonnes of sugar, with Inland Africa Logistics Ltd bringing in 9,550 tonnes — translating to 15 per cent of the total imports.
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