State officials blamed for ailing sugar sector

By Stanley Ongwae

Migori, Kenya: Five Nyanza leaders now claim there is a deliberate move by the Government to kill the ailing sugar industry in the region.

They said top Government officials are involved in importation of sugar flooding the Kenyan market, which has pushed local sugar companies out of business.

“We are aware of cartels in the Government who are frustrating cane farmers by importing sugar,” said Siaya Senator James Orengo.

MPs Jakoyo Midiwo (Gem), Jared K’opiyo (Awendo), Silvance Osere (Kabondo Kasipul) and David Ochieng (Ugenya) said there was a deliberate intention by the national government to malign development of sugarcane farming in the country.

Orengo said all sugar millers in Nyanza region were at the verge of closing down because of heavy losses they were incurring due to reduced business.

K’opiyo said thousands of tonnes of cheap sugar being imported into the country tax-free had made business at the South Nyanza Sugar Company reduce; a factor he said has led to delayed and reduced earnings for farmers.

Midiwo said the Government should commit to buy processed sugar from farmers as a way of cushioning them against the big losses they are already incurring due to reduced business.

“They (Government) should demonstrate goodwill to cane farmers by offering to buy all the sugar in warehouses just as it does with maize and wheat farmers to redeem them from further losses,” said Midiwo.

Workers face sack

The leaders told the Government to ensure there was a quick transfer of assets in the agricultural sector to devolved governments to ensure smooth transition aimed at promoting devolution.

Majority leader in the Migori County Assembly Johnston Owiro said there was a likelihood that many people working at the sugar industries would be sacked because the sugar companies that have employed them were making heavy losses.

“An example is the South Nyanza Sugar miller that is currently reeling in a workers’ payment crisis. Staff have to suffer without salaries because the company has no money to pay them,” said Owiro.