Once a thriving industry and a reliable source of income for farmers and jobs, the sugarcane sub-sector is on its deathbed. All the state-owned companies that were the pride of the western Kenya sugar belt have collapsed. The few private firms that are still operating are tiny players in a troubled industry.
With the sugar companies unable to pay farmers for their cane, the region’s economic stability has been terribly shaken and the consequence is rampant poverty and underdevelopment. It is in response to this sorry state of affairs that President Kenyatta appointed a task force to look into the problems bedevilling the industry and propose solutions.
The most encouraging news is the commitment to reviving the sub-sector, which the President reiterated recently after receiving the report of the National Sugar Task Force.
The team has made some recommendations, including paying farmers who deliver their cane to the millers in seven days. This is easier said than done. How will this be possible if the millers cannot get a ready market for their sugar? One of the biggest challenges is the dumping of imported cheap sugar in the country. Another proposal is the reintroduction of the Sugar Development Levy. There is also the problem of obsolete equipment and poor management of sugar factories, the high cost of production, debts and acute cane shortage and declining yields.
Other challenges are low value-addition initiatives, inefficiencies, inadequate research and lack of extension services, which have reduced farmers’ incomes. There is a shortage of the raw material due to farmers abandoning cane for other crops over payment delays. Some farmers have accused the government of attempting to rubber-stamp “unrealistic and impractical” decisions. In addition, financial bailouts are not the panacea for the industry’s woes. It will take a lot more to revamp the industry. A whole gamut of interventions, including improving efficiency through modern technology, research, stopping the dumping of sugar and incentives to encourage farmers grow the crop again, are needed.
Mumias and Chemelil sugar companies have already received hundreds of millions of shillings in such ill-advised bailout plans.
Though the government’s assurance of support is a good starting point, it will take a lot more effort to revamp the industry. A whole gamut of interventions, including improving efficiency through modern technology, research on new varieties, stopping the dumping of sugar and incentives to get farmers growing the crop again, are crucial.
