Millers and farmers fight sugar import plan

Cabinet Secretary for Agriculture, Livestock and Fisheries Felix Koskei during the departmental committee meeting on agriculture at County Hall on October 28, 2014. Koskei announced plans to import sugar to avert shortage. FILE PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • Bosses of various sugar firms and farmers unions are wondering why the government wants to import sugar when millers have tonnes of unsold sugar in their stores.
  • He said the shortage had been caused by closure of Mumias and West Kenya Sugar company for maintenance.

A proposal to ship in 21,000 tonnes of sugar has met stiff opposition from sector players.

Bosses of various sugar firms and farmers unions are wondering why the government wants to import sugar when millers have tonnes of unsold sugar in their stores.

Sony Sugar managing director Jane Pamela, Soin Sugar’s James Bett and Chemelil’s head of finance Joseph Omondi said the decision is premature.

On Saturday, Agriculture Cabinet Secretary Felix Koskei announced plans to import sugar to avert shortage.

Mr Koskei, who spoke at Kapsabet Highlands Academy in Nandi County on Saturday, said some 7,000 tonnes of sugar are expected in the country this week.

He said the shortage had been caused by closure of Mumias and West Kenya Sugar company for maintenance.

However, sugar millers and farmers differed with Mr Koskei insisting that factories have huge stocks of sugar, which should be exhausted before any imports can be made.

SUGAR SHORTAGE
Investigations by the Nation revealed that by end of last month, Sony Sugar had 3,000 tonnes of sugar in stock in addition to another 6,000 tonnes it processed this month.

“Given its falling dominance, Mumias Sugar’s one-month closure could not have had such a huge impact on the sugar market to occasion importation,” Ms Pamela said.

“We do not see any shortage of sugar, in the South or other regions,” she said.

This came as Sony Sugar put off its annual maintenance plans indefinitely.

The MD said they had called off the exercise because spare parts for the equipment they wanted to fix were yet to arrive from a foreign country.

“We will do it next year,” Ms Pamela said.

Sources told the Nation that the postponement has also been informed by the looming sugar shortage in Kenya. Ms Pamela also confessed that an impending sugar shortage was also part of the reason.

MINISTRY ACCUSED

Soin boss Bett accused the minister of being insincere. The MD, whose company closed in June for maintenance, said the announcement was a scheme by government officers to flood the market with cheap sugar.

“I believe companies such as Muhoroni, Sony and Kibos have not exhausted their sugar stocks. The ministry should take control of the market. “Why do we over-import at times and are left without sugar at other times?” he asked.

Mr Omondi, who represented Chemelil Sugar’s managing director Charles Owele, said importing sugar was a ploy by unscrupulous traders to exploit Kenyans.

Farmers’ unions said the plan to import sugar does not reflect the interest of Kenyans.

Kenya Union of Sugar Plantation and Allied Workers secretary-general Francis Wangara and his Sugarcane Growers Association counterpart Charles Obuya termed it an avenue by individuals who want to make quick cash.