The revival of the struggling Mumias Sugar Company remains a pipe dream unless the national government surrenders its 20 per cent shareholding to farmers through the county government, a lawmaker has said.
Lugari MP Ayub Savula on Wednesday said the shares would enable farmers to secure loans for farming.
He said the initiative by Kakamega Governor Wycliffe Oparanya to form a task force to revive the miller was a publicity stunt and a waste of time.
In April, Oparanya formed a task force to come up with the way forward on the company's revival. The team began its sittings on Tuesday.
Savula said once-premier mill requires more than Sh20 billion to resume full operation — the amount is double the county’s annual budget.
“A special account should then be created to receive money from the sale of the sugar so farmers are guaranteed payment in time to motivate them back into growing the crop,” he said.
Savula urged the government to step in and convince company suppliers and contractors to give it at least one year before it begins repaying them based on a schedule.
There is a need for Butali and West Kenya mills to strengthen and take care of cane farmers in Malava, Lugari and Likuyani, he said.
“We need to zone the sugar belt, form a pricing committee that will ensure that what farmers are paid is commensurate with the price of the sugar on shelves, and set a paying date to end the madness caused in the industry by poaching of rivals’ cane.”
Senator Cleophas Malala engaged the Oparanya sugar task force in a heated argument after they attempted to stop him from talking about the Sh200 million that the county gave to a private firm to pay farmers.
He said the money remains unaccounted-for and should be used to lease the company's nuclear estate and plant the cane.
Malala said Oparanya was wasting time forming a task force, yet he and Agriculture CS Mwangi Kiunjuri co-chaired the sugar taskforce formed by President Uhuru Kenyatta to look into the sugar industry crisis.
He accused Oparanya of playing politics with the lives of Kenyans.
He said the task force was a conduit used by the county government to siphon Sh10 million taxpayer money. The team lack integrity as some of its members still stay in houses belonging to the millers and have taken advantage of the current situation not to pay rent, the senator said.
(Edited by F'Orieny)
