Hand over sugar factories to ‘knowledgeable’ residents, leaders say

Sugar factories in western Kenya should be managed by local communities, say regional leaders.

The leaders said the communities were better placed to run the factories since their lives depend on sugarcane farming. They accused the National Government of insisting on managing the plants yet it had no knowledge of the dynamics in sugar production.

Migori County Governor Okoth Obado, Senators Moses Wetang’ula (Bungoma), Wilfred Machage (Migori), Daisy Kanainza (nominated) and MPs Joseph Ndiege (Suna West) and Jared Kopiyo (Awendo) said the process should be done in consultation with counties.

They were speaking in Migori Town on Sunday.

Mr Obado said he was prepared to buy Awendo-based Sony Sugar factory through partnership with the community. “We will not let it go, no matter the cost because we want to protect the welfare of our cane growing farmers,” he said.

WRITE OFF DEBTS

Mr Wetang’ula noted that unlike other sectors that were jealously guarded by the government, the sugar industry had been left to “wheeler-dealers to destroy”.

He, however, cautioned: “But before the county administrations buy the factories, their debts, which are in billions of shillings, must be written off, the same way it has happened in other sectors.”

Dr Machage said the industry risked collapsing if left in the hands of people who are not from the cane growing areas. “We will stand firm on the planned privatisation of sugar factories.”

Mr Kopiyo said that National Assembly’s Finance Committee had presented its report on privatisation of sugar mills to the House calling for their release to counties.

“The regional governments will have majority shareholding while farmers will also have a stake so that they are represented in the management boards where key decisions are made,” said the Awendo MP.

OBSOLETE MILLING MACHINES
Sony Sugar Company in Migori County owes creditors more than Sh1 billion. The firm’s managing director Jane Pamela Odhiambo said part of the debt were loans given to the factory for expansion in 1990s.

“But the money never helped the factory because it was used to buy obsolete milling machines and sub-standard vehicles.

“We are asking the government to write off the debts to enable us borrow from commercial banks,” she said.

Kakamega Governor Wycliffe Oparanya and his Kisumu counterpart Jack Ranguma said the current model used by sugar millers blocked farmers from reaping enough profits.

“We can collect Sh1 billion from the sugar sector alone. That is why I want institutions such as Mumias Sugar Company to survive,” Mr Oparanya said.