Farmers demand bigger stake in sugar firms

By Kepher Otieno

Sugar cane farmers in Nyanza Province are demanding a 51 per cent stake in the state owned sugar companies, which are due for privatisation.

The farmers appealed to the Government to ensure private investors are not given majority shares in Chemelil, Muhoroni and Miwani sugar factories when they are privatised within the next 14 months.

They spoke at Chemelil Sugar factory when they met members of the Privatisation Commission.

Former Minister for Agriculture, Odongo Omamo and area Kenya Sugar Board Director, Daniel Kodongo questioned why the process was being hurried.

Omamo also asked the Government to zero-rate the VAT on farm inputs.

The former Minister for Agriculture said the sugar industry was under performing because of the high cost of cane production.

Former nominated MP Ezekiel Bargetuny, who represented farmers from the Rift Valley, called for the extension of the Comesa safeguards, which expires in 2012 to give farmers more time to buy shares in the sugar farms.

"We should not tie ourselves to the Comesa deadlines without taking into account the level of farmers preparedness," he said.

They demanded that the farmers be given more time to consult widely before buying the shares.

Draft report

According to the Privatisation Commission Chief Executive Officer Solomon Kitungu and Chairman Peter Kimuyu, the companies are to be privatised within the next 14 months.

Before the process starts, the commission is required to access the state of sugar companies, meet stakeholders and prepare a draft report, which will be tabled before the Cabinet.

The team visited the moribund Miwani Sugar factory under receivership and pledged to revive it.

Miwani farmers led by the Secretary of the Kenya Sugar cane Growers Association demanded that farmers be allowed to elect at least two directors into the Board of the sugar firms.

The Muhoroni Multi-Purpose Cooperative Society chairman, Mr Charles Atyang said new investors should be ready to assist in institutionalising harvesting and transport in the sugar belt.