As the war of words between President Uhuru Kennyatta and Opposition leader Raila Odinga over the planned importation of sugar rages, millers have raised concern that they lack market for their produce.
Four millers operating in Western Kenya — Mumias, Butali and West Kenya in Kakamega County and Nzoia in Bungoma County — say they struggle to sell their commodities.
A spot check by The Standard on Sunday revealed that Nzoia Sugar Company is holding more than 100,000 tonnes of sugar in its stores due to lack of market. The miller has slowed down production as it carries out annual routine maintenance.
West Kenya has been operating at full capacity but has sold most of its sugar. Michael Michumo, a top manager at the firm, could not divulge the exact number of tonnes the company had in store, promising to get back to us next week.
Butali re-opened last Monday and has produced slightly more than 10,000 tones of sugar, most of which had been distributed to retail stores across the country.
“We have just re-opened after closing for 90 days to carry out routine maintenance. We are not able to get you the figures now as we have not crushed to full capacity,” said Dan Kiyondi, a senior manager.
Mumias Sugar Company, whose revival plans are begged on a number of factors including how much cheap sugar is imported into the country, has raised concern that it will find it difficult to sell its produce. Mumias has the capacity to crush 1.8 million tonnes of cane per year and produce more than 173,000 tonnes of sugar.
Newly appointed Managing Director and Chief Executive Officer Errol Johnston says although they face challenges from cheap sugar imports, it is the farmers he wants to focus his attention on first as he seeks to turn around the giant miller.
“We have been closed for routine maintenance and don’t have sugar at the moment,” Johnston said in his first press briefing at the Mumias Sports Club on Friday.
While Mumias and Nzoia are public entities, Butali and West Kenya are privately owned.
There are fears that the deal signed by the government with Uganda will flood Kenya with cheap sugar imports and drive local millers out of business.
“Cheap sugar importation and smuggling has also contributed to the failure of (Mumias) sugar company as illegal sugar imports is repackaged into local branded bags containing the company’s details, then sold back,” Dr Bonni Khalwale, the Kakamega Senator, said.
According to the Kenya Sugar Board, the country produced 502,563 metric tonnes of processed sugar in 2012 and 600,179 in 2013. In 2014, output was projected at about 700,000 metric tonnes, with an annual consumption capacity of about 900,000 metric tonnes. The country imports 200,000 to 300,000 metric tonnes annually from regional neighbours in the COMESA trading block.