Kisumu, 13/1/2007

THE KENYA GOVERNMENT IS GIVING LIP SERVICE TO THE SUGAR INDUSTRY

  Commentary by Leo Odera Omolo
  LUOCOME
  KISUMU
 
  The government of Kenya is only giving lip service to the sugar industry with
no tangible and genuine policy to improve it.
 
  The sugar industry in Kenya is a milking cow for the unpatriotic top
executives who control it, from the Minister down to the CEO of the sugar
factories, working  in association with top cartels of well connected suppliers
and importers of the same commodity.
 
  This year being an election one, these unscrupulous people have already
devised  schemes  to raise extra money for their election campaigns and that is
why the price of sugar keep rising and shortages persist.
 
  Kenya's Minister for Agriculture Kipruto Arap Kirwa who has just made an
announcement that sugar price would come down has himself come under scathing criticism for giving lip service to the ailing sugar industry.
 
  It will be remembered that the COMESA reprieve for Kenya was given about 4 years ago with specific target of improving efficiency in sugar Production so as to be able to complete in the regional trade. It is now evidently clear that
after 4 years, nothing tangible has been done at the production end.
 
  The average yields of cane per hectare have remained lower that what was
obtained in the 1970s and the ratio of cane to sugar bagged has remained high.
Morover, there is nobody effectively policing it for improvement. The yields of
one hundred and thirty tones of cane pile were obtainable in the earlier days
and now the average is only about one half of those earlier figures.
 
  Appointment of the top managers in the sugar sub sector has been haphazard,
with technical people put at the helm on many occasions.  Yet when things get
worse, the reasons are always the same all these years: bad management  and old equipment. 
 
  Going by the trend in controlling the sugar industry, it will be a further
waste of time asking COMESA  to give additional grace period when there is total  lack of vision and machinery put in place at production end to improve the efficiencies that are needed so badly.
 
  Many good articles have been written and read at numerous conferences held
almost every year. Resolutions have been passed proposing best ways forward. But all these have fallen on deaf ears.  These good reports now gather dust somewhere without follow up. Even the good Amayo report, in which the government sunk millions in its preparation, has neither been fully implemented nor domesticated to date. What is apparent is total lack of seriousness in improving the sugar industry in spite of all the publicity the citizenry is given
frequently by those in the sugar docket.
 
  Basic items like setting and implementing price formula for sugarcane has
often not been agreed upon and implemented!! Haphazard prices are occasionally given whose basis remain mysteries!!
   
  Recently, Sugar retailed at about one hundred shillings per kilogram. Nobody
is telling citizenry how this money was computed. How is it shared in the
industry, particularly what portion went to the farmer, miller, transporter and
trader?

  The heavy profiteering in cane transport, which leaves the farmer poorest has
not been addressed! There is money in the industry, and the richest people here
are traders and transporters, while farmers remain like their slaves. The miller
is also not left better off.

     For years now there have been recommendations for the Ministry to institute a single desk for sugar marketing to ensure effectiveness and availability of the commodity at an affordable price, but nobody in authority seem to care to get this done.
 
  May be Minister Kirwa has been in this Ministry for too long, and may be he
now needs a change for him to get fresh air in another Ministry. He has proved
himself not capable of effecting the desired changes.
 
  KSB in its part has mainly concentrated importation at control point of entry
of Mombasa but very invisible in the local production area to push for controls
to improvement efficiency. The efficiency that is required to make the Kenyan
factories competitive is not instituted in Mombasa and Nairobi, but in the
production areas inside the country.
 
  The Nyanza sugar factories are nowhere near the preparedness for COMESA, in spite of the four years that have elapsed. It will take a miracle to change the situation .All the sugar factories are declining. Miwani  is in worse state than it was in 2001.Chemelil is worse that it was in 2002. There is no visible program to hope that Muhoroni will improve the ratio of cane to bagged sugar anywhere near the figure ten (10) which is essential for competition  in market .Sony is worse of than it was in 2002.

The only positive things to speak of include recently paying the farmers their
dues on the cane delivered in the years 2000-2001 plus last minute availing of
factory maintenance funds and in such a way that proper planning is impossible.
 
  The frequent natural and common results are factories that do not run well
after maintenance. Where does the millions of shillings usually allocated
annually for the maintenance of these factories go?
 
  Hon Dr Kituyi, as the Trade Minister has done well for protecting the sugar
industries in regional and international trade. But his agricultural counterpart
is sleeping with regards to improving efficiency in the sugar industry.
 
  Kirwa's price cut announcement only came late after a lot of water has passed
under the bridge. The stakeholders, especially cane farmers, have read mischief
in the entire management of the sugar industry in the country.
 
  The Minister said that meetings between stakeholders in the industry and the
government have resolved to reduce sugar prices and import the commodity from COMESA region.
 
  He said the current retail price of between 70/- to 75/- would come down to
65/- while the wholesale price would reduce from 3300/- for each 50kg bag to 2800/-
 
  Sugar importation, the minister said, would commence on February 1, 2007 and not February 28 as earlier planned "to immediately mitigate the sugar supply and pricing in the market". The Minister directed the KSB to bring forward the commencement of duty free imports from the COMESA Free Trade Area.
 
  A total of 200,000 metric tones is expected to be imported into the country.
This include 89,000 metric tones of domestic sugar and 11,000 metric tones of
industrial sugar.

 
  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.
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