Kisumu Senator Anyang’ Nyong’o and Gem MP Jakoyo Midiwo have moved to court to challenge the privatisation of five public sector-owned sugar companies. The two argue that the sugar Industry is on the verge of collapse following the Privatisation Commission’s decision as it is not properly constituted and is legally incapable of carrying out its mandate.
Nyong’o said it has advertised and re-advertised a request for expression of interest for the privatisation of Nzoia Sugar Company Ltd, South Nyanza Sugar Company Ltd, Chemelil Sugar Company Ltd, Muhoroni Sugar Company Ltd (in receivership) and Miwani Sugar Company (in receivership). The two politicians said there are pending issues raised by stakeholders on the privatisation that have not been addressed or resolved.
“The subject privatisation is of utmost importance to stakeholders, in particular the cane farmers, as it goes to the root of their livelihood. The consequential effect on them if the process was to proceed in the opaque manner adopted will be grave as it has the potential of and indeed threatens to collapse the sugar industry in Kenya,” they said.
Court documents indicate that the National Assembly on April 21 last year approved the privatisation of five public sector-owned sugar companies on condition that any ancestral land currently held by any of the sugar companies remain under the ownership of the local community. Also further consultations on the privatisation process should be held between the government, the sugar farmers and other key stakeholders, including the governors, before embarking on the implementation of the proposed recommendations. Nyong’o and Midiwo said the commission has violated the Privatization Act as regards holding of meetings and is thus illegally in office and ought to be disbanded.
Through Lawyer Victor Obondi, the two politicians said the commission is incapable of holding any meeting or making any valid decision, since the expiry of the term of office of the seven members appointed on September 19 last year, the commission has had only four members.