Western sugarcane farmers and millers call for revival of KNTC

A tractor in Kabras sugarcane zone in Kakamega. FILE PHOTO | NMG

What you need to know:

  • The Kenya National Federation of Sugarcane Farmers and the 13 licensed millers said importation of sugar should be limited to KNTC and the factories on a 50:50 basis.
  • During a stakeholders meeting in Kisumu on Thursday, it was proposed that millers be allowed to import sugar in order to meet local deficit.

Cane farmers and millers have called for the revival of Kenya National Trading Corporation for the sole purpose of handling sugar imports.

The said the corporation should fully take charge of sugar importation in a bid to address dumping.

The Kenya National Federation of Sugarcane Farmers and the 13 licensed millers said importation of sugar should be limited to KNTC and the factories on a 50:50 basis.

During a stakeholders meeting in Kisumu on Thursday, it was proposed that millers be allowed to import sugar in order to meet local deficit.

The meeting at Vic Hotel was convened by the Lake Region Economic Bloc.

“In the long run, we should not allow millers to be actively involved in the importation of sugar as that will contradict the core mandate of their existence,” Sony Sugar Company MD Bernard Otieno said.

Millers had initially asked to be given the sole responsibility of importing sugar but reached a compromise during the meeting, which was chaired by LREB chairman Wycliffe Oparanya and Kisumu Governor Anyang’ Nyong’o.

They, however, added that importation should be restricted to the provisions of the Comesa trade agreement.

The Thursday parley was a follow-up of a June consultative meeting called by Agriculture Cabinet Secretary Mwangi Kiunjuri at Windsor County Club, which was attended by senators, MPs and players in the sugar industry.

The Kisumu resolutions will be consolidated with previous ones and presented to the ministry within 30 days before being forwarded to President Uhuru Kenyatta and crafting a final draft of the 2018 Crops (sugar) Regulations.

“We hope the Windsor 2 meeting will be the last one as we attempt to generate concrete solutions to Kenya’s sugar industry,” Mr Oparanya, who is also the Kakamega governor, said.

The meeting agreed to reinstate the Sugar Act with some amendments as well as the reintroduction of the Sugar Development Levy.

“The levy will facilitate cane research, development and infrastructure,” read part of the resolutions.

On licensing new mills, the forum said the matter should be through consultations and agreement by both levels of government.

It was also proposed that farmers be paid for all cane products and by-products, including molasses and bagasse.

It was also agreed that regional zoning should be introduced.

According to the new deal, farmers would not be restricted to one sugar miller but would be put in a regime where there are two or three factories.