Cane growers raise cash to buy five sugar companies

Farmers in the Nyando and Nandi sugar belts have started contributing Sh9,000 each as part of plans to buy five sugar millers once they are put up for sale.

The sugarcane farmers are planning to raise Sh900 million through the scheme.

The government is planning to privatise Nzoia, Miwani, Sony, Chemilil and Muhoroni sugar companies.

Under the arrangement, farmers are supposed to buy 30 per cent stake while the national government and counties take up 40 and 30 per cent respectively.

More than 100,000 farmers allied to Kenya Sugarcane Growers Association (KESGA) and Nandi Sugar Belt Cooperative Union have started raising funds in anticipation of the sale.

Speaking to Nation yesterday, leaders of the two groups said that farmers would contribute the money, which will be deducted from sugarcane payments, in three instalments.

“We will make about Sh900 million so that we start from a strong note,” said secretary-general KESGA Richard Ogendo in an interview.

Nandi Sugar Belt Cooperative Union chairman Stephen Yego said they were working with their Nyando counterparts to form “a formidable force” to enable them to acquire the shares.

“Once the government begins the selling process, we will come together as farmers to form a strong team to ensure that we have enough resources and leadership to take part in the management of Chemelil and Muhoroni where we supply cane,” he said.

ENHANCE COMPETITION

The plan to privatise the factories  was approved by Parliament in 2010 as a way of enhancing competitiveness and efficiency of the country’s sugar sector.

The initial Bill that went to Parliament gave farmers 51 per cent stake but this was later reviewed to 30 per cent.

The privatisation commission, which is supposed to drive the sale, is yet to be reconstituted.

Agriculture, Fisheries and Food Authority director-general Alfred Busolo said yesterday Parliament is expected to provide guidelines on the privatisation.

“There have been calls from various quarters that we should hasten the process but Parliament is taking time to work on more helpful policies that will see a smooth takeover by private investors,” he told Nation on phone.

RAISED CONCERN

Farmers have raised concern that they have not been educated on the requirements that will guarantee them the 30 per cent ownership.

“The government by now should have held trainings advising farmers on the process that will lead us to be shareholders, but no one seems interested,” said Mr Benard Busienei, a farmer from Chemase, Nandi County.

Mr Joseph Onyango, a farmer in Muhoroni, said it was unfair that farmers had no information on the progress of the privatisation plans although they were expected to take part in the management of the sugar companies.

“How do we get ready as farmers?  For some reason, the government has been giving lip-service on this issue instead of coming to the ground to make it practical,” he said.