Sugarcane farmers in Kenya are set to receive Sh2.7 billion from the National Treasury, marking a significant step toward resolving long-standing payment issues, according to Agriculture Cabinet Secretary Mwangi Kiunjuri.
Kiunjuri emphasized that the government and industry stakeholders are working on a comprehensive strategy to address systemic challenges in the sugarcane sector, including the privatization of financially troubled sugar companies. The move aims to stabilize the industry and ensure timely payments to farmers.
During a meeting with ODM leader Raila Odinga in Nairobi, Kiunjuri stated that persistent payment delays would soon be resolved. He highlighted ongoing efforts to attract private investment, particularly for state-owned firms like Chemelil, Miwani, Muhoroni, Nzoia, and Sony Sugar, which have faced severe financial difficulties.
Odinga criticized years of government funding without resolving payment bottlenecks, noting that private capital injection would enable modernization of sugar mills. A key stakeholders' meeting in Kisumu next week will finalize privatization details, according to Odinga.
The Cabinet Secretary also confirmed that a presidential task force established to address farmer grievances will complete its work after all payments are made. The group's mandate includes reviewing industry policies, assessing challenges, and examining sugar import regulations.
Odinga lamented that corruption and mismanagement had crippled the sector, while officials from the Ministry of Agriculture and the Privatisation Commission attended the meeting.
