MPs raid Mumias sugar depot

Mumias Sugar Company was on Tuesday accused of dumping cheap imported produce in the country despite being the biggest local miller.

Members of the Parliamentary Committee on Agriculture made an impromptu visit to a depot it said belongs to Mumias and discovered more than seven tonnes of sugar.

After the visit to Shimanzi depot in Mombasa on Monday, the MPs recommended the sacking of the company’s entire management.

The MPs said that more than 10,000 bags of imported sugar were at the depot.

Committee vice-chairman Kareke Mbiuki accused Mumias of giving preference to imported sugar and neglecting its product.

Firm’s defence

“We cannot believe what we have discovered. We began our investigations a few days ago in Mombasa following numerous complaints from sugarcane farmers and even Mumias Sugar Company itself that the local market is flooded with cheap imported sugar,” said Mr Mbiuki.

But in a quick rejoinder, Mumias Sugar managing director Peter Kebati denied that the firm imported more sugar than what it was licensed to bring into the country. Mumias Sugar Company was issued with a licence to import 10,000 tonnes of the produce on March 22, last year. But the licence expired on May 22, 2013.

“We did not import any more sugar that we were allowed by the Kenya Sugar Board. It is only that we have not released the sugar to the market fast enough. That is why we have some stock which is almost finished,” he said.

MPs claimed that customers who visit the depot are asked whether they want the more expensive local sugar or the imported cheap one.

“Naturally, most of them choose the cheaper one.”

When the committee returned to the depot yesterday, the storage facility was locked with guards saying they had instructions not to let in anybody.

Mr Benjamin Wachiali, a member of the committee, who is also the Mumias West MP, said the committee would recommend the sacking of the company’s management.

“We shall also summon them before this committee to explain these irregularities and baffling revelations. Why should Mumias Sugar Company complain that the market is flooded with foreign sugar when they are behind the selling of the product?” he asked.

The committee also visited Rising Star Commodities Limited, Mitchel Cotts and “many more sugar godowns in Mombasa” during their investigations and found thousands of tonnes of the imported product.

Supporting documents

“In every godown we went to, in every store we visited, it was flooded with cheap sugar from Egypt, Sudan, India and elsewhere. The sellers told us they bought all this from Mumias Sugar Company and we have documents supporting their claim,” said Mr Mbiuki.

The committee members also asked the Kenya Sugar Board to investigate the true origin of the sugar in the market, expressing fears that most of the commodity is not from Comesa.