State backs Kwale cane venture revival

Sugarcane plantation.[iStockphoto]

The government has moved to boost sugarcane farming at the Coast by launching an ambitious plan to revive the fortunes of the multi-billion shilling Kwale International Sugar Company (KISCOL) that had stalled for months.

Speaking during a site visit at the Kiscol milling plant in Ramisi, Kwale County, Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe announced the formation of a stakeholder committee that will spearhead full revival of the milling plant operations.

The committee, to be led by the Kenya Sugar Board (KSB), will encompass the national government, the Kwale County government, investors, sugarcane farmers, security agencies and local leaders in efforts to resolve legal, operational, and other challenges that have affected the operations.

''KISCOL remains one of the country's most strategic sugar investments, possessing modern milling infrastructure, an extensive irrigated nucleus estate and a large outgrower network capable of transforming the economy of Kenya's Coast region,'' CS Kagwe said.

He added that challenges bedevilling the miller that produces white sugar primarily for the domestic market extend beyond financing, citing land disputes, cane shortages, vandalism, delayed farmers' payments and insecurity as key issues that require coordinated interventions.

''I have full support of President William Ruto to resolve all issues, including upholding court orders against the government,''  Kagwe said.

The government was ordered by the High Court in Mombasa to pay Sh24 billion to KISCOL after it was found to have breached land lease obligations and failed to protect the investors' 15,000-acre nucleus estate from squatter invasion.

He congratulated the local investor Pabari Group and Omnicane for supporting the project despite the prevailing challenges.

Among immediate measures announced is the planned clearance of Sh66 million in outstanding farmers' arrears.

Kagwe urged the Kwale County Government to expedite the resettlement of some 15,000 squatters occupying part of the firm's 7,000-acre land.

The KISCOL plant has an installed capacity to crush 3500 tonnes of cane daily, with plans to extend it to 5,000 tonnes.

The KISCOL enterprise incorporates 5,500 hectares of cultivated cane, an 18-megawatt bagasse-fired power plant and an irrigation (subsurface drip irrigation) and water management system and is one of the largest Greenfields in Africa.

Elsewhere, another new cane growing venture is taking shape in the expansive Tana River County after Sukari Industries announced that it had launched a 40,000-acre sugarcane project in the area.

Sukari Industries Head of  External Affairs and Communication George Mururi said the firm is keen to support government efforts on employment creation and boosting food production through commercial agriculture.