Reprieve for Kenya as Comesa extends sugar safeguards for a year

By James Anyanzwa

Local sugar millers have received a major reprieve. This follows Comesa Council of Ministers’ extension of the country’s protection against cheap imports from the regional trading bloc by a year. The ministers, during a meeting in Kinshasa Wednesday, agreed to Kenya’s request for an additional time to put their sugar sector in order.

The Comesa safeguards expired yesterday. The Parliamentary Committee on Agriculture, Livestock and Cooperatives is however opposed to the extension of the Comesa safeguards.

The oversight committee argued that mismanagement of Kenya’s sugar industry rather than increased competition is what has brought the sector down to its knees.

“I’m against this extension. It is of no use and value because there is a lot of mismanagement in the sugar sector,” Committee Chairperson Adan Mohamed Noor told The Standard yesterday.

The committee noted that illegal trading in the commodity has ‘killed’ the sugar sector, impoverished farmers, denied the Government revenue, paralysing operations of sugar millers.

“This sector is being killed by illegal sugar imports and smuggling. The Government need to be serious.” The 29-member committee has described smuggling and illegal importation of cheap sugar into the country as a time bomb that has already detonated. The local sugar industry is in turmoil due to irregular licensing of sugar millers, smuggling of cheap sugar imports and rampant cane theft that has hit the Western Kenya sugar-growing belt.

“As a committee, we are concerned and worried about the manner in which sugar importation is being effected. These imports come in despite the presence of key institutions along the borders to check on illegal importations,” said Noor who is also the MP for Mandera North.

“How these imports find their way into the country is a question Kenyans are asking. We want to know who are the main beneficiaries of these illegal imports.” The expiry of Comesa safeguards could have opened up the local sugar industry to competition from Comesa trading bloc.

Kenya sought Comesa intervention of safeguard mechanism in 2003 to protect its sugar industry from threats of imported sugar.

But there have often been fears that the country is running out of time to fully meet the conditions set out by Comesa in 2007. The privatisation of the local sugar industry is part of the reforms that need to be undertaken before the expiry of the Comesa safeguard measures in February 2014.

The companies slated for sale include Chemilil, Muhoroni, Miwani, Nzoia and Sony Sugar. Other reforms include change in cane pricing formula from one based on cane weight to one based on sucrose content of the cane delivered and improvement in the road network.