Delay in sale of sugar firms blamed on laxity by MPs
What you need to know:
- Mr Outa however said he would propose that farmers own 51 per cent of shares instead of the 30 per cent proposed by the privatization commission.
- Privatization commission chief executive Solomon Kitungu said the sale of the sugar mills will start immediately they get Parliamentary approval.
Parliament is on the spot for failing to pass laws that will pave the way for the sale of five sugar millers in Western Kenya.
The House is supposed to make laws so that Chemelil, Muhoroni, Miwani, Sony and Mumias companies can be sold.
Though vacant positions in the Privatization Commission were filled in September 2012, the officials cannot work since they have not been vetted by Parliament. The agency is supposed to spearhead the process.
Speaking separately, Agriculture committee members Ayub Savula (Lugari), Fred Outa (Nyando) and his Mbita counterpart Millie Odhiambo yesterday said that the process of making the laws might even take longer.
Mr Savula said the House team was supposed to hold consultative meetings with the commission, National Treasury, Agriculture ministry and county governments on valuation of milling machines and allocation of shares even before the mills are advertised for sale.
“The first consultation with counties has not even been done. It means that even if we proceed at the same speed, it will take over one year to complete,” said the MP.
51 PER CENT
Mr Outa however said he would propose that farmers own 51 per cent of shares instead of the 30 per cent proposed by the privatization commission.
“The delay is not an issue. Regulations should be put in place to protect farmers’ interests. Farmers should control most of the stake as the government has largely failed since 1972,” he said.
Privatization commission chief executive Solomon Kitungu said the sale of the sugar mills will start immediately they get Parliamentary approval.
“The detailed proposal approved by the finance, planning and trade committee of Parliament on 2nd December 2014 is awaiting discussion and approval by the whole House,” he said.
In his visit to Nyando sugar belt in November last year, Agriculture Cabinet Secretary Felix Koskei also blamed Parliament for the delay in privatisation.
The government is keen to sell the firm so they can compete effectively with others in the region.
Comesa sugar will be allowed duty free this year if the government’s appeal for an extension is denied.
As part of plans to revive the mills, sugarcane farmers would be paid based on the sucrose content of their harvest instead of weight as it is currently done.
Millers are also expected to diversify their products into molasses.
