This archive report was first published on 6 July 2020.
June 11, 2020, marked a significant day for Kenya's sugar sector as the government announced the writing off of Sh62 billion in debts owed by millers and farmers. This move has been welcomed by stakeholders in the industry, including Kisumu Governor Anyang' Nyong'o and his Migori counterpart Okoth Obado.
The debt waiver is expected to ease the financial burden on the sugar industry, making it easier for factories to attract strategic investors. This, in turn, could lead to the leasing or privatization of the factories, which have been struggling to stay afloat due to the heavy debts and dirty balance sheets of the sugar millers.
Agriculture CS Peter Munya made the announcement to revive the sugar industry in line with a raft of recommendations by industry stakeholders in the Sugar Task Force Report. The move is part of a broader effort to revive the region's economy, which was discussed by western Kenya leaders with President Uhuru Kenyatta earlier this week.
The five factories that were tipped for privatisation but will now be leased are Chemelil, Miwani, Muhoroni, Nzoia Sugar, and South Nyanza Sugar (SonySugar). Of these, Miwani and Muhoroni are already under receivership.
Kenya Federation of Sugarcane Farmers Secretary General Ezra Okoth also expressed relief, saying new measures aimed at streamlining the sugar sector were good. However, he urged the president to fast-track the implementation of the National Sugarcane Task Force Report.
"It has not been easy to lease the factories or even sell them to investors due to the heavy debts and dirty balance sheets of the sugar millers," said Kisumu Governor Anyang' Nyong'o.
