REVAMP SUGAR MILLS BEFORE PRIVATIZATION, GOVERNMENT TOLD

Apr 30, 2014 Editor Kisumu News Kisumu, News 0

BY OMOLLO ODHIAMBO.

Former legislature has challenged the National Government to revamp sugar factories within Nyando Sugar-Belt before the planned privatization.

Former Nyakach legislator Pollynes Ochieng Daima said the revitalization will be the first step to jump start the sector before the repeal of the Common Market for Eastern and Southern Africa (COMESA) safeguard.

Speaking to Kisumu News Daima told the government to fast track the privatization and ensure the factories are in good shape before they are disposed off.

Kenya’s inefficient sugar market is currently protected by safeguards against any duty-free imports from the COMESA.

Following the launch of the Free Trade Area on October 31, 2000 by members of COMESA Kenya expressed concern that her sugar sector was not able to compete against those from other member countries.

The Government then applied for protection of the sector by way of a safeguard under Article 61 of the COMESA Treaty so that sugar exports from the common market to Kenya are subject to customs duties.

The safeguard was implemented in March 2002 for its initial period of 12 months and subsequently renewed by the Council of Ministers.

Subsequent to that extensions have been done five times, with the last one lasting a year from February 2014 to February 2015.

Daima says sugarcane farmers need to be capacity build in order to be able to buy shares when privatization comes.

He added that government should advance loans from the Agricultural Finance Corporation to farmers to be able to take part in the privatization.

Speaking in Kisumu, Daima sympathized that sugarcane farmers are bound to be the losers if they are locked out of the process to sell off the mills.

The former MP warned that leaders from the sugar growing zones will move to court to block any sale of the mills if the Government fails to revamp the industries.

The plan by the government to revamp the sector before privatization has caused the delay in privatization process.