The government has now put in place key reforms to transform the sugar sector which will encourage farmers to grow and plant cane to change their fortunes.
Some of the reforms President William Ruto’s administration is banking on are bonus payments to sugarcane farmers, reducing sugar imports, debt relief, leasing state-owned factories, and subsidising farm inputs.
The revelation follows President Ruto’s launch of a Sh150 million sugarcane bonus to 15,000 Mumias Sugar factory farmers on Monday.
During his six-day development tour in the Western Kenya region, President Ruto maintained that, for the country to produce enough sugar for local consumption and export, the government must support the sector by ensuring there is good management in the state-owned sugar millers and farm inputs are made available for farmers.
“A year ago, when I was in Mumias, I promised the sugarcane farmers to streamline the sector. I was going to write off debts, leasing of the factories, and ensure we have good management within our millers. And today, the government has written off Sh117 billion debt owed by state-owned millers. We have achieved this and Mumias Sugar Factory is an example,” said Ruto.
The President said the problem that is facing the sector is lack of prompt payment to farmers, workers, and accrued debts.
READ: ‘It’s too early to complain’, Ruto chides Kalonzo over sugar bonuses
The Head of State has maintained that to revive the sector, the government needs to implement a commercialisation programme of all state-owned sugar factories, including Nzoia, Muhoroni, Chemilil, and Sony, adding that the bonus payout will be rolled out to all the government-owned millers.
He exuded confidence in Kenya becoming a sugar export nation by 2027, courtesy of cheap fertilizer and a raft of measures.
“Last year, we produced 830,000 tonnes of sugar, which was the highest ever since independence and we have increased acreage of cane farming by 43,000 acres. But our target is to have an extra 200,000 acres of land for cultivation,” said Ruto, adding:
“This year we are going to increase the supply of fertilizer from 700,000 bags to 1 million bags to produce more sugar because we have the capacity. By 2027, we are going to have a surplus of sugar, become a net exporter, and stop using hard-earned money to import sugar at the expense of our farmers.”
Ruto directed the Ministry of Agriculture to collaborate with research institutions to ensure they come up with a sugarcane-specific fertilizer by next year.
Stay informed. Subscribe to our newsletter
The Head of State also directed the ministry to speed up the formulation of regulations to be approved by Parliament in the next one month to operationalise the Sugar Act that he signed last year to get rid of cartels and streamline the sector.
Additionally, the government intends to write off debts owed by millers, amounting to Sh1.5 billion and pay workers arrears.
In the last two years, the country has witnessed a reduction in the importation of sugar.
The government’s efforts at Mumias Sugar Company are being viewed as a model for other state-owned sugar mills.
“I am going to ensure all farmers are equal and the bonus initiative is replicated to Nzoia, Muhoroni, Sony, Chemilil, and Busia sugar factories,” Ruto said.
Speaking in Bungoma on Friday, Ruto said Nzoia Sugar company will re-advertise a bid for a strategic investor in a move to rescue itself.
The government has pledged to support farmers with a range of initiatives, including a Sh600 million disbursement to the Kenya Sugar Research and Training Institute (KESRETI) to promote the development of quality sugarcane planting material.
The newly established Kenya Sugar Board is also working to create a central database for farmers, with a focus on fair compensation through the Sugarcane Pricing Committee, which ensures equitable returns for both growers and millers.
ALSO READ: We will revive the sugar sector through leasing and not privatization, Ruto insists
Moreover, the government aims to reduce sugar imports to less than 10 per cent of annual demand by 2026.
According to the Ministry of Agriculture, the government’s approach also includes providing farmers with subsidised fertilizers and a Sh600 million cane development fund.
While the reforms have been lauded by many, Simon Wesechere, the Deputy Secretary of the Kenya Federation of Sugarcane Farmers, has urged the government to form a formal legal framework necessary to ensure the longevity of the initiative.
“Our biggest worry is not the payment itself but the lack of legal protection for the process. Without a framework, this could easily be discontinued,” said Wesechere.
Kakamega Governor Fernandes Barasa expressed his commitment to supporting the sugar sector’s revival by helping with cane development and providing subsidized farm inputs like fertilizers.
He also promised that the bonus payments would double by 2026, a commitment that has been welcomed by many local farmers.
