Six sugar millers are set for revamping and commercialization under a programme approved by President William Ruto’s-led Cabinet meeting at the Saga State Lodge on Tuesday.
The move is expected to address the high retail price of sugar occasioned by an acute cane shortage in the country.
The six millers are; Nzoia Sugar, Chemelil Sugar, South Nyanza Sugar, and under receivership millers Miwani Sugar Company, Muhoroni Sugar Company, and Mumias Sugar Company.
The Cabinet also authorized the extension of the framework for duty-free importation of milled sugar to bridge the supply deficit.
If the above proposals are approved by Parliament, the State-owned entities would be operated under a lease and operating framework.
The country currently produces about 600,000 tonnes of sugar per year, but it consumes about 900,000 tonnes per year. The government hopes that the revamping of the millers will help to reduce the country’s sugar imports.
The revamping of the millers is also expected to create jobs and boost the economy of the sugar-producing regions in Kenya. The sugar industry is a major employer in Kenya, and it contributes significantly to the country’s economy.
Meanwhile, sugar milling is currently under suspension, a directive issued by the government in a bid to allow sugarcane to mature and improve the quality of sugar produced.
The Kenya Federation of Sugarcane Farmers (KFS) termed the move as a blow to cane farmers who will not be able to sell their produce.
KFS chairman Saul Busolo called on the government to reconsider the suspension and allow sugar milling to resume. He said the government should also address the underlying problems in the sugar industry, such as low sugarcane prices and high production costs.
However, the government defended the suspension of sugar milling, saying it is necessary to improve the quality of sugar produced in Kenya.