The entrance to Miwani Sugar Factory in Kisumu County. It is one of
the State-owned millers expected to be leased to private firms
What you need to know:
The government has been accused of abandoning the process of leasing out of five State-owned sugar factories.
While challenging Agriculture Cabinet Secretary Peter Munya to come out and issue direction on the process, disgruntled workers and cane growers raised concerns that the delay continues to cripple the sector.
“While the government revealed an elaborate strategy that could re-energise the sector which is currently on its knees, we are concerned that the CS has decided to go quiet,” said Kenya Union of Sugar Plantation and Allied Workers (Kuspaw) general secretary Francis Wangara.
Mr Wangara who was incorporated in the interim management committee on the leasing of the factories, said the team chaired by Agriculture Chief Administrative Secretary Anne Nyaga has failed to lead the process over five months after appointment.
“According to the last meeting held in October this year, members were informed that their mandate does not extend to leasing of the factories, but running operations of the factories until the firms are leased out,” he said.
Leasing process
“The terms of reference must be expanded so that the committee is allowed to talk about the leasing process in order for me to be in a better position to fight for the rights of the workers who risk losing their jobs and their arrears,” he added.
Mr Wangara pointed out that the plight of over 5,000 workers who are owed over Sh5 billion in arrears risk being pushed to the periphery.
“Despite the numerous court cases challenging the process, the CS has not called the parties to the table to find out their issues to incorporate the same to the process of leasing,” said the union leader.
Kenya National Alliance of Sugarcane Farmers Organisations (KNASFO) chairman Saulo Busolo while stating that leasing is the only hope for the industry, underlined the need to fast track the process.
“We do not want to be caught in the confusion as we head to the 2022 elections. This process should be expedited to address the plight of thousands of stakeholders who depend on the trade,” he said.
Selfish people
Kenya Association of Sugarcane and Allied Products (Kasap) chairman Atiang’ Atyang’ also termed as unfair that the process is being derailed by people who he termed as “selfish”.
As a way of revitalising operations of the firms, the government intends to identify strategic investors to give a new lease of life to Nzoia, Chemelil, Sony, Muhoroni and Miwani sugar companies for a leasehold period of 25 years.
Successful financiers are expected to lease, redevelop and operate the sugar complexes at sufficient processing capacities to support diversification into co-generation of export power, production of bioethanol and allied co-products.
Agriculture ministry in September indicated that it has received bids from 29 companies, which have expressed interest, among them, two firms linked to tycoon Jaswant Rai, China CAMC Engineering Company Limited, Shenzhen Start Instruments, Mehta Group, Kibos Sugar, Butali Sugar, Mini Bakeries and Kuguru Food Complex.
vraballa@ke.nationmedia.com
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