This archive report was first published on 2 July 2020.
Kenya's Agriculture ministry has taken drastic measures to protect local sugar mills from cheap imports, which have been negatively impacting farmers.
According to Agriculture Cabinet Secretary Peter Munya, the imports have rendered local mills uncompetitive due to their cheap nature.
Mr. Munya noted that the influx of illegal imports, especially through the Busia border, has allowed unscrupulous businessmen to take advantage of curfew hours.
"We have suspended all brown (table) sugar imports into the country with immediate effect. We have also suspended pre-shipment approvals and extension of all sugar import permits until further notice," he said.
Mr. Munya emphasized that the uncoordinated importation of brown sugar has made Kenya's mills uncompetitive, with ex-factory prices remaining at Sh85,260 for a tonne compared to the CIF price of Sh60,117 for the same quantity.
The announcement comes just weeks after leaders from the western sugar belt raised concerns that high importations had rendered sugar factories untenable, impacting negatively on farmers.
Kenya is allowed to import 350,000 tonnes from the Common Market for Eastern and Southern Africa to fill the deficit.
However, stopping imports is likely to result in a high cost of the commodity in the market, as the cheap imports usually check the high cost of the sweetener locally.
Mr. Munya made the announcement yesterday when he rolled out a raft of reforms aimed at streamlining the sector, which has been a perennial dismal performer.
Other reforms announced include leasing state-owned sugar mills to private investors for a period of 20 days to process and develop cane on farms owned by the millers.
Mr. Munya said the long leases of state-owned firms will help increase farmers' income and improve competitiveness and services in the sugar sector.
"Through comprehensive reforms, the government is determined to facilitate a multi-purpose sugar cane industry that is efficient, diversified, and globally competitive through enhanced industry competitiveness and cost reduction strategy," the CS said.
