Team opposes counties’ bid to buy sugar firms
What you need to know:
- The commission said it is set to engage stakeholders ahead of the implementation of a privatisation report that was approved by the National Assembly on April 21.
- Governors Jack Ranguma (Kisumu), Wycliffe Oparanya (Kakamega) and Zachary Obado (Migori) had called on the national government to sell them the sugar factories.
- “As county governments, we will help farmers access credit and inputs. We understand their problems better than the national government,” he said.
A team that oversees the privatisation of government-owned companies has opposed plans by county governments to buy five sugar millers in western Kenya.
The companies are Sony Sugar in Migori County; Muhoroni, Chemelil and Miwani in Kisumu County; and Nzoia in Bungoma County.
The regional governments have asked the Privatisation Commission to allow them to acquire the millers and pay by instalments.
However, the commission chairman, Mr Henry Obwocha, yesterday said it would be inappropriate to sell the millers to county governments.
He said it would be illogical to transfer the companies from one government to another.
“The challenges facing the sugar industry have largely been blamed on the involvement of the government. Why should we then transfer these challenges to another government, the county administration?” he told the Nation.
ENGAGE STAKEHOLDERS
The commission said it is set to engage stakeholders ahead of the implementation of a privatisation report that was approved by the National Assembly on April 21.
The discussions will start in Migori County. They will then be held in Kisumu County and finally in Bungoma County.
Mr Obwocha said the consultations will start in six weeks.
“In the talks, we will be trying to find out how the counties and the locals want to be engaged in the sale of the companies,” said Mr Obwocha.
Governors Jack Ranguma (Kisumu), Wycliffe Oparanya (Kakamega) and Zachary Obado (Migori) had called on the national government to sell them the sugar factories.
Mr Ranguma said if Kisumu County was allowed to take over the firms, it would set aside budget allocations to help address the challenges the millers and farmers are currently facing.
“As county governments, we will help farmers access credit and inputs. We understand their problems better than the national government,” he said.
