Muhoroni MP Onyango Koyoo and cane farmers have urged the government to engage sector players in the leasing of state-owned sugar companies.
The legislator said farmers, operatives and unions are the major shareholders in the sugar sector and their input is important to prevent any backlash.
Muhoroni constituency hosts Chemelil, Miwani and Muhoroni sugar factories. Miwani is in receivership.
Koyoo, however, supported the government's plan to look for investors who will lease, develop, and operate Chemelil, Miwani, and Muhoroni and manage them over a period of time.
“Leasehold is the best way to rescue these factories. But we appeal to the government to ensure public participation is done,” he said on Friday.
He has organised a major meeting on Monday at Nyangoma Youth Resource Centre.
Last week, Agriculture Cabinet Secretary Peter Munya said the Cabinet had approved the leasing of Muhoroni, Chemelil, Nzoia, Miwani, and Sony sugar companies for 20 years to process and develop cane on farms owned by the millers.
Munya said the ministry will invite bids from private firms for the lease of the five state-owned factories this month.
Koyoo, however, noted that details of leasing the factories should be made public for transparency and accountability.
He has questioned the hurry in which the lease process is being undertaken before public participation.
“We don’t want secrecy in the process. All the cards must be put on the table. We want to know how those who will be awarded the lease is selected,” he said.
Koyoo said stakeholders want to know the value private investors will add to the economic development of the region.
“The investors must tell us how they will help develop infrastructure such as roads and schools as part of corporate social responsibility as well as employment for youths,” he said.
Koyoo also wants a proper leasing structure in place for the job security of workers. “We must avoid cases where an investor will abandon crushing sugarcane and embark on a different business,” he added.
He said the lands where the factories are built must also be well-secured as they belong to the community.
“The investors must have the capacity to develop factories and cane, but not those who will take huge loans from banks then fail to pay to leave the factories and land to be auctioned. These are issues that must be put straight into the lease process,” he said.
He thanked the President for the efforts put in place to revitalise the sugar sector by writing off about Sh62 billion debts from the government-owned factories.
“We are very grateful that the government has written off billions of debts,” he said.
Kenya National Federation of Sugarcane Farmers Muhoroni branch secretary Noah Opiyo called for public participation before the leasing process.
Edited by A.N
