This archive report was first published on 9 July 2020.
On July 9, 2020, Western Kenya sugar belt counties expressed support for leasing State-owned sugar mills, marking a significant shift after previously opposing the sale of the factories to strategic investors.
The move, announced by Kakamega Governor Wycliffe Oparanya and his Kisumu counterpart Anyang Nyong'o, aims to boost sugar production and income for farmers.
The governors, through their Lake Region Economic Bloc, welcomed the decision to write off Sh62 billion in debt owed by the millers to the State and the reintroduction of the Sugar Development Levy.
The levy, they argued, would provide a steady source of revenue for farmers, counties, and factories, supporting farm and infrastructure development in the sugar belts.
Agriculture Secretary Peter Munya stated that long leases of State-owned firms would increase farmers' income and improve competitiveness, as well as service delivery in the sugar sector.
Mr. Munya also banned sugar imports last week and suspended trading licenses to curb the influx of cheap sweetener, which had negatively impacted farmers.
The imports had made Kenya's mills uncompetitive due to their cheap nature compared to local sugar, with sugar imports rising 21% in the first five months of the year.
