Plan to sell sugar firms runs into fresh headwinds

Migori county governor Okoth Obado speaking during the Privatisation Commission and the Intergovernmental Technical Relation Committee meeting chaired by the commission chairman Prof. Karega Mutahi in Kisumu. The planned privatisation of five public sugar millers has run into fresh trouble. (PHOTO: COLLINS ODUOR/ STANDARD)

The planned privatisation of five public sugar millers has run into fresh trouble.

This follows a fresh stalemate between the Privatisation Commission and the Council of Governors over the plight of farmers.

An emergency meeting, convened with the authority of  Attorney General Githu Muigai, had to be postponed yesterday after governors and farmers' representatives shot down proposals by the commission and the Intergovernmental Technical Relations Committee (ITRC) to proceed with the privatisation.

The Government wants to privatise Nzoia, Chemelil, Sony, Muhoroni and Miwani. The latter two have been in receivership since 2000 with Miwani completely run down.

The commission and ITRC wanted stakeholders to let the process go on so as to cushion the country for external shocks as the Common Market for Eastern and Southern Africa (Comesa) safeguards, which were extended to February next year lapse.

Migori Governor Okoth Obado, who chairs the Council of Governors' Agriculture Committee, said there is need for further consultations with the devolved units since the process started before county governments came into force had failed to consider their roles in their management.

Obado sharply differed with the Privatisation Committee, insisting on public participation.

"The national government continued with privatisation unilaterally even after the counties came into place. The process started even before the Constitution we have was in place and, therefore, the process should have been halted once things changed so that the counties are involved in fresh consultations," said Obado in reference to Article 1 of the Constitution.