01/12/2007
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Kisumu, 11/1/2007
KIRWA'S TOUGH STAND ON SUGAR SHORTAGE IN KENYA
By Leo Odera Omolo
Minister for agriculture Kipruto Arap Kirwa yesterday came out with a no nonsense statement and gave Sugar Company chief executives less than 24 hours to explain why the price of the same commodity has gone up.
Kirwa said there was no shortage and production has been normal. The country daily sugar production exceeds daily consumption and there is no way sugar can go missing from shops and stores.
The minister disclosed that daily production of sugar by the millers stands close to 30,000 bags of 50kg compared to 28,000 50 bags consumed daily.
Kirwa's stern warning came in the wake of hue and cry from the consumers countrywide that the price of sugar has gone up to unaffordable proportions .A kilogram of sugar currently retails for between Kshs 100 and Kshs 120/, up from kshs 70/- before November 2006.
The minister further disclosed that the sale of sugar at the factory gate to the distributors is at between Kshs 59/- to kshs 64 a kilogram or between Kshs 2,950 to Kshs 3,300 per 50kg bag.
What the Minister seems to be unaware of, however, is the existence of a cartel of middlemen who purchase bulks of sugar at the factory gate of the Sony Sugar Company but sell the same at the factory gate to third parties at exorbitant or inflated prices. Some of these racketeers are said to the government officials, including high court judges. The practice is very common.
The minister also asked the CEOs to explain to him whether the current distribution network is effective or defective. "You must answer me or otherwise I have no business working with you. I will make sure I send you to the periphery so that you feel what Kenyans are feeling"
The minister said it was unilateral for traders to sell at Kshs. 100/- a kilogram, which means they are making 30/- a kilo.
Out of the 7 sugar processing factories in the country, three are wholly government owned. These are Chemelil, Nzoia, and Sony Sugar Company. The government also has a steak in the run down Miwani Sugar mills(1985), but Miwani went burst and was placed under receivership a couple of years ago. It is currently closed. The government has a stake in another sugar company which is under official receivership but still on production.
With the recent sale of 91.9 million of its shares in Mumias sugar, the government retains only 20 per cent of the company's shareholding.
ENDS
leooderaomolo@yahoo.com
The writer is LUOCOME REPORTER based in Kisumu. We urge all LUOCOME members with pressing issues pertaining to media and press releases to kindly contact him from any where in world. He will assist you to get true picture of your Village Developement.
LUOCOME-MEDIA
=====================================================KIRWA'S TOUGH STAND ON SUGAR SHORTAGE IN KENYA
By Leo Odera Omolo
Minister for agriculture Kipruto Arap Kirwa yesterday came out with a no nonsense statement and gave Sugar Company chief executives less than 24 hours to explain why the price of the same commodity has gone up.
Kirwa said there was no shortage and production has been normal. The country daily sugar production exceeds daily consumption and there is no way sugar can go missing from shops and stores.
The minister disclosed that daily production of sugar by the millers stands close to 30,000 bags of 50kg compared to 28,000 50 bags consumed daily.
Kirwa's stern warning came in the wake of hue and cry from the consumers countrywide that the price of sugar has gone up to unaffordable proportions .A kilogram of sugar currently retails for between Kshs 100 and Kshs 120/, up from kshs 70/- before November 2006.
The minister further disclosed that the sale of sugar at the factory gate to the distributors is at between Kshs 59/- to kshs 64 a kilogram or between Kshs 2,950 to Kshs 3,300 per 50kg bag.
What the Minister seems to be unaware of, however, is the existence of a cartel of middlemen who purchase bulks of sugar at the factory gate of the Sony Sugar Company but sell the same at the factory gate to third parties at exorbitant or inflated prices. Some of these racketeers are said to the government officials, including high court judges. The practice is very common.
The minister also asked the CEOs to explain to him whether the current distribution network is effective or defective. "You must answer me or otherwise I have no business working with you. I will make sure I send you to the periphery so that you feel what Kenyans are feeling"
The minister said it was unilateral for traders to sell at Kshs. 100/- a kilogram, which means they are making 30/- a kilo.
Out of the 7 sugar processing factories in the country, three are wholly government owned. These are Chemelil, Nzoia, and Sony Sugar Company. The government also has a steak in the run down Miwani Sugar mills(1985), but Miwani went burst and was placed under receivership a couple of years ago. It is currently closed. The government has a stake in another sugar company which is under official receivership but still on production.
With the recent sale of 91.9 million of its shares in Mumias sugar, the government retains only 20 per cent of the company's shareholding.
ENDS
leooderaomolo@yahoo.com
The writer is LUOCOME REPORTER based in Kisumu. We urge all LUOCOME members with pressing issues pertaining to media and press releases to kindly contact him from any where in world. He will assist you to get true picture of your Village Developement.
LUOCOME-MEDIA
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