The conversation on Sugar Companies Privatization continues to deepen as stakeholders try to find a long lasting solution to the tussle.
Towards solving the stalemate, the Cabinet Secretary Ministry of Agriculture, Livestock, Fisheries and Irrigation Hon. Mwangi Kiunjuri convened a High Level sugar industry consultative meeting on 28th and 29th June 2018 at the Windsor Golf and Country Club. The meeting was to address the challenges affecting the Sugar Industry and discuss a way forward. In the meeting were Governors from the Sugar Belt led by HE Okoth Obado, Chairman of the Council of Governors’ Agriculture Committee.
The Sugar Industry is currently in its lowest point with Companies recording loses and some operating below their operation capacity. In his presentation before the plenary, the Managing Director Sony Sugar Company, Mr. Bernard Otieno noted that Sony Sugar Company is currently operating below 50% of its capacity. This is leading to loses in the company that has slowed down most of its operations and made sugar production unsustainably expensive.
Council of Governors has continually proposed on the change of strategy towards privatization of Sugar Factories in Kenya. This is informed by the challenges sugar companies are currently facing. These challenges include; Low cane supply, cane poaching, ageing equipment and obsolete technology, high debt portfolio, farmers’ arrears, lack of regulations among others.
To be able to address these challenges, the meeting recommended:-
1. THAT the Ministry of Agriculture, Livestock, Fisheries and Irrigation will provide leadership in bringing together the relevant Government Departments and agencies to address the financial requirements of the Public Sugar Companies.
2. THAT the Public Sugar Companies shall seek strategic partners for capital injection.
3. THAT a multi-sectoral team be appointed to review the legal and regulatory framework and pay particular attention to the issues to the issues of cane poaching and need for zoning.

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