Traders allowed to import 210,000 tonnes of sugar

By David Ohito

Kenya Sugar Board (KSB) has auctioned quotas for importation of 210,000 tonnes of sugar.

In a rare public auction, strict importation rules were slapped on importers who are required to bridge the deficit being experienced in the market. The imports have been staggered to arrive between October 10 and February 28, next year.

KSB Chief Executive Rosemary Mkok and Chairman Okoth Obado maintained the shortage was artificial, and blamed it on hoarding by traders.

It is envisaged imports will save consumers high prices witnessed in the last three months when a kilo of Sugar retailed at between Sh80 and Sh120.

"Kenyans should not pay more than Sh80," Obado said. He said some 35 importers were given licences to import table sugar and this will stabilise the market and guard consumers from exploitation. The biggest bidder got an allocation of 12,000 tonnes, while the lowest 500 tonnes.

Importers clearance

Importers paid Sh200,000 as commitment fee and Sh100,000 for licences to get clearance to import the commodity. About 50,000 tonnes had been imported by September to meet the deficit estimated at 260,000 tonnes annually.

Kenya is expected to implement Comesa safeguard measures by February 2012 or risk competition from the trading bloc. It should privatise Government owned millers and turn them around.

Obado allayed fears of further shortages arguing Mumias Sugar Company that produces 60 per cent of sugar consumed local had resumed operations.