Kenya to privatize sugar factories: Government, stakeholders to dialogue
The government of Kenya has said it will seek the advice of agricultural stakeholders on the proposal to lease five state-owned sugar mills.
Agricultural Cabinet Administrative Secretary, Anne Nyaga, who revealed this making these known while on an inspection visit to the Muhoroni Sugar Company.
According to her, the government working to ensure the views of all critical stakeholders are considered before the implementation of the ambitious project.
The project, she added, would turn the tides for the ‘troubled’ sector.
The sugar sector is a source of income for over 400,000 smallholder farmers who supply over 90 percent of the milled cane.
Handing over the mill to private sector players is expected to bring about a paradigm shift in the sector, thereby enhancing its competitiveness in the local and global markets.
The efficient management of factories would contribute to socio-economic development, one of which is being a source of livelihood to 8 million Kenyans.
“The timetable for the programme is yet to be released and we will make it public to enable us incorporate all the views of the people and ensure a smooth working relationship between the new investors and the locals,” Nyaga said.
She noted that the ministry had embarked status-test visit to 5 mills before concluding on the leasing exercise.
“Other than Muhoroni, I will also visit Miwani, Chemelil, and Sony Sugar which have been earmarked for a leasehold period of 25 years,” she said.
The government would continue to give full support to companies that are faced with setbacks, poor infrastructure amongst others, she added.