Ministry on the spot over sugar imports
What you need to know:
- Felix Koskei asked to explain why cheap sugar imports were being allowed into the country instead of the government strengthening factories to produce adequate stock.
- Senator Henry ole Ndiema (Trans Nzoia, Ford-K) said importation of cheap sugar imports was affecting farmers.
The Senate has asked Agriculture Cabinet Secretary Felix Koskei to explain why cheap sugar imports were being allowed into the country instead of the government strengthening factories to produce adequate stock.
Senate’s Agriculture Committee chaired by Kiraitu Murungi (Meru, APK) said sugar produced in the country could not compete in the global market due to obsolete equipment and high production costs that have made the produce expensive.
“External prices for sugar are lower compared to our local produce. Why can’t our factories produce other energy products and produce sugar as a by-product as it happens in other countries?” Mr Murungi posed.
BANKRUPT FACTORIES
The committee also observed that the plan to privatise State-owned sugar factories was facing challenges because investors were unwilling to inject their funds on insolvent enterprises.
“A recent audit showed that almost all sugar factories are insolvent. Nobody wants to buy a bankrupt organisation. Is the government keen to make factories more attractive?” Mr Murungi posed.
Senator Henry ole Ndiema (Trans Nzoia, Ford-K) said importation of cheap sugar imports was affecting farmers.
“The sugar is being smuggled into the country even from countries like Somalia. Closure of factories for maintenance should not happen at the same time. It should be staggered to ensure there is no shortage,” he said.
