KSB, State officials in raw over sugar import quota

By Kepher Otieno

A raw has erupted between the Kenya Sugar Board (KSB) and the Ministry of Agriculture over import quota regulations role, The standard has reliably learnt.

The ministry wants to assume the role of sanctioning imports to bridge the shortfall realised in the domestic market.

Previously, this role was a prerogative of the board. But it has now emerged that senior officials at the ministry want to usurp the board’s powers and assume some of its key functions.

The matter is likely to ignite a heated debate in the sub-sector. KSB represents farmers’ interests in the industry, where an estimated six million derive their livelihood directly or indirectly.

One of the reasons the board was allocated the responsibility was because it represents the growers’ interests and therefore there is no way they could allow massive imports that flood the local market.

On Thursday, several KSB directors who spoke to The Standard on condition of anonymity confided that some top ministry officials were out to clip their powers. This, they claimed, was bound to elicit conflict because if state officials take away the board’s powers, then the body would be redundant.

Delayed swearing in

This is why the board is out to reject the move by some State officials who want to take advantage of the delayed swearing-in of the new board to assume the duty.

Efforts to reach KSB Chief Executive Solomon Odera on Thursday were futile although sources at the board disclosed the matter has strained relationships between the State and KSB.

The issues come as the Parliamentary Committee on Agriculture led by Joshua Mututho toy with multiple proposals to curb the unstable sugar prices as well as sanction imports from non-Comesa countries to ease runaway sugar prices.

But several cane farmers interviewed claimed that the rising sugar prices should not be used as a scapegoat to allow the state to assume the licensing import duty.

The grower’s officials led by Killion Osur (Muhoroni) Jeremiah Kitur (Soin) claimed that the state was out to allow unscrupulous sugar barons to abuse the import quota.

"This is why former minister William Ruto banned the import cartels," said Osur.

Kitur said the directors must be allowed to regulate imports because they will not allow too much sugar that will occasion glut in the local market.

Currently, the price of sugar is high amid shortage of cane supplies to local factories brought about by increased competition by new millers.

The sector supports more than 200,000 small-scale farmers who supply over 85 per cent of cane milled to the local factories.

The country is to retain the current enlarged import quota of duty-free sugar as part of a deal that prompted a two-year extension to realise complete liberalisation of local sugar sector.

The lowly 10 per cent duty presently charged on consignments outside the 340,000 tonnes special quota from Comesa would also be sustained as a plan to wean the local sugar industry to competition.

The safeguards were due to end by March next year, but Kenya won a reprieve after it was granted an additional two years to complete key tasks such as privatisation that are aimed at making the sector more competitive.