Inside Ruto's bag of goodies for the sugar sector in Bungoma Madaraka Day

President William Ruto dished out goodies during the 61st Madaraka Day celebrations in Western Kenya, promising to turn around the sugar sector, the backbone of the region's economy.

He revealed that his government had written off Sh110 billion in accumulated debt owed by sugar factories and pumped a further Sh2 billion into sugarcane development through state-owned mills.

The Head of State, who was speaking at Masinde Muliro Stadium in Kanduyi, Bungoma County, said the introduction of a new leasing scheme will ensure prompt payment of cane deliveries by farmers.

The scheme, he said, will speed up payment of salaries to factory workers and enable cane farmers to earn bonuses from investment in the crop.

“We are firmly committed to ensuring that the sugar industry returns maximum value to all actors in its value chains beginning with the cane grower. Bonuses to sugar cane farmers will earn bonuses every end of the year, like other crops,” said Dr Ruto.

The sugar sub-sector has remained the backbone of Western Kenya’s economy but is facing mismanagement issues, sparking outcry from cane farmers and workers who go for months without payment.

President Ruto pledged to revive the sector with a Sh2 billion investment into sugarcane development through State-owned mills after the completion of the leasing process.

First tranche

The National Treasury, he said, is to release the first tranche of Sh600 million for seed cane development.

“As part of my commitment to invest Sh2 billion into sugarcane development through State-owned mills, after leasing is completed, I am proud to announce that the government has approved the first tranche of Sh600 million for seed cane development, and the National Treasury shall shortly release these funds,” said President Ruto.

Leaders and farmers from sugar belt regions have criticised the planned privatisation of State-Owned mills, with some of them moving to court to halt the process.

Ruto said his administration was developing a farmers’ and agripreneurs database to improve access and utilisation of information in the agriculture sector to enable farmers to access low-cost farm input and ready market for their produce.

He disclosed that 6.4 million registered farmers captured in the database have accessed subsidised fertiliser from the Fertiliser Subsidy Programme.

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