A tractor transports sugarcane on the Kisumu-Nairobi highway on August 5. PHOTO | TONNY OMONDI | NMG
Woes facing the sugar industry are not about to abate after a
section of private millers in western Kenya disowned recent draft
regulations that among others, set zoning as one of the pillars. They
now say the rules are meant to benefit State firms at the expense of
privately owned factories.
And now two organisations
both championing interests of the sector are bitterly torn apart with
one being accused of presenting views that had not agreed upon.
On
Thursday, the private companies sided with a group of farmers opposed
to the rules going as far as threatening to seek legal redress to ensure
they are not implemented.
West Kenya Sugar Company
Limited, Sukari Industries and Olepito Sugar Company Limited, all linked
to businessman Jaswant Rai but who are independent members of the Kenya
Sugar Manufacturers Association (KESMA), disowned their lobby, saying
it presented views without consulting them.
The trio
wrote to the Agriculture and Food Authority, a government agency charged
with implementing policy on sugar, saying they are gravely concerned by
the submissions made by their association.
The millers
representatives who spoke to the Sunday Nation objected to the
recommendations by Kenya Sugar Manufacturers Association (Kesma) on
delineation of sugar zones into five regions and have accused the
association of ignoring their concerns.
Kesma
had proposed zoning of cane into five regions namely Central region
(Siaya, Kisumu, Nandi and Kericho); Upper Western region (Bungoma,
Kakamega, Trans Nzoia, UasinGishu and Nandi); Lower Western region
(Mumias and Busia); Southern region (Migori, Homa Bay, Kisii and Narok)
and Coastal region (Kwale, Tana River and Lamu).
“In
the course of the said meeting, the draft sugar regulations came up for
discussion but they were not debated in detail and no
resolutions/positions of millers were agreed upon,” read the statement
signed by West Kenya Sugar Company Limited Managing Director Tejveer
Singh Rai.
The miller said issues of sugar zones and the farmer’s freedom to contract remain controversial among all stakeholders.
“The
proposed regions bear no regard to the installed capacity and long-term
viability of sugar factories in the proposed regions. The proposed
delineation of regions seeks to give advantage to some sugar factories
in central region (Siaya, Kisumu, Nandi and Kericho) and in Upper
Western Region (Bungoma, Kakamega, Trans Nzoia, Uasin Gichu and Nandi)
and also in Lower Western region (Mumias and Busia),” read the letter.
Farmers termed the move authoritarian, punitive and discouraging the policy of willing buyer willing seller.
Divisions
within the millers association appeared centred on private versus
State-owned with the latter campaigning for adoption of rules to protect
their sourcing areas. Private millers say farmers should be free to
sell to whoever offers a better deal.
Sony Sugar
Company board chairman Charles Owino Likowa said the cost of sugar is
set to remain high due to demand supply issues. "But we hope the
situation will be short-lived so that consumers do not suffer for a long
time," he said in Migori Town.
A section of cane farmers in Kisumu said the restriction will deter upcoming investors who want to set up new factories.
“This
is an illegal document as it was generated without the input of
critical stakeholders. We promise to take the matter to court by end of
this (last) week,” said a farmer Atiang’ Atyang’ from Chemelil. He spoke
to reporters at Sunset Hotel.
According to Clause 10 (5) of the draft regulation, no new factory is allowed to operate in another miller’s registered zone.
But
Mr Atyang’ pointed out that the constitutional court ruling in Kakamega
declared the Sugar Act, which prohibited establishment of another mill
within a 40 kilometre radius from an existing mill as illegal.
“The
draft opens the leeway for non-performing millers to edge out well
performing millers who are harvesting, delivering and paying farmers in
good time,” he said. Agriculture Cabinet Secretary Mwangi Kiunjuri had
asked stakeholders and wananchi to submit their views or comments to him
through the Agriculture and Food Authority before the publication of
the draft Sugar Regulations, 2018.
While saying Kesma
is an informal and ad hoc association of sugar millers whose
representatives meet on need to be basis to discuss various issues
affecting the sugar industry and to lobby for common interests of sugar
millers in Kenya, West Kenya Sugar Company Limited called for further
consultation on the draft before it is published.
The
miller said a meeting called earlier by their association did not
conclusively agree on the issue and that contentious views or positions
and legally unsound proposals were submitted as the purported common
views of Kesma members.
“It is highly presumptuous of
the association’s chairman to not only submit such a position but also
proceed on to propose the means of zoning — through regions,” said the
letter.
The miller now joins some farmers who have been
opposing cane zoning. Kenya National Federation of Sugarcane Farmers
National Treasurer Stephen Narupa said such a move would only work
against farmers by.
“This is monopoly disguised as
zoning. We want a free market where farmers will choose where to sell
their cane. Farmers are free to contact with high paying miller,” said
Mr Narupa.
He said farmers have for a long time
suffered under poor policies formed by the government to regulate the
sugar industry. “It is unfortunate that our concerns have often fallen
on deaf ears yet without the supply of our cane, we would not have any
sugar produced in our country,” said Mr Narupa.
Mr
Lambert Ogoch, a farmer from Busia County, said realisation of two sugar
companies in Busia is in jeopardy due to the new rules. He termed as
unfortunate that the residents of Nasewa continue to languish in poverty
after being forcefully evicted to give up their land for the
construction of two sugar factories at Olepito and Busibwabo.
“The
members of Nasewa community were forcefully evicted from their land of
341 hectares and are hoping that they will not be taken back to Mumias
Sugar Company,” he said.
The land was acquired by the
State in the 90s and given to Busia Sugar Company for construction of a
sugar factory. The farmers’ representatives drawn from Kisumu, Nandi and
Kericho counties have also petitioned Kiunjuri, Office of the Attorney
General and Agriculture and Food Authority to rethink the matter.
— Additional reporting by Elisha Otieno
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