Kenya Sugar Board CEO Jude Chesire and Chairperson Nicholas Gumbo during a public participation meeting with millers on development of the Sugar Development Fund Manual and update on the sugar industry policy direction. [Courtesy]
Sugar millers operating in the upper and lower western regions will halt operations starting Friday, July 11, following a government directive ordering a three-month closure.
According to the Sugar Board Chief Executive Officer, Jude Chesire, the region is facing an acute shortage of mature sugarcane, with some farmers resorting to harvesting immature cane.
The situation, he noted, has been brought about by a lack of proper planning for cane development.
“This suspension will allow sugarcane to mature and enable a reset in cane supply planning. We will also conduct a cane census within two months to better assess field readiness ahead of resuming operations,” said Chesire, following a stakeholder consultative meeting held in Kisumu.
The Kenya Sugar Board notified affected millers of the impending closure. They include Nzoia Sugar Company, Butali Sugar Mills, West Kenya Sugar Company, Mumias Sugar, and Busia Sugar.
Further, the millers are expected to implement measures that guarantee an uninterrupted production of the important raw material by putting in place reliable cane development plans.
The closure comes amid a government-led campaign to end sugar imports for the local industry to thrive.
On July 1, a 4 per cent Sugar Development Levy (SDL) came into effect and is expected to generate an estimated Sh500 billion to be channelled into programmes aimed at reclaiming the troubled sector.
The money will be spent on cane development programs, rehabilitation of roads in the sugar zones, research and innovation, modernisation of the factories, funding farmer organisations, and on administrative functions of the Sugar Board.
“With the SDL in place and proper financing mechanisms, we are now on the right track. The failures of the past must not be repeated. This is the moment to reclaim the future of Kenya’s sugar industry,” Chesire said.
Several reform measures are under implementation to turn the country’s sugar sector back to profitability after several years of a slump.
At least four sugar millers in the western region have been privatised as the government pushes for more private sector players to ramp up local sugar production, which would effectively put a stop to the importation of sugar.
