Cane farmers want state to offset Sh1.7 billion arrears

Sugarcane farmers from Nyanza region have urged the government to fulfill its promise to offset Sh1.7 billion arrears owed to them

The government had promised last year that it will pay the arrears before the new year.

The Kenya sugarcane Federation Officials said President William Ruto promised to pay them before new year.

Led by Killion Osur, the farmers said they are yet to receive any money in their accounts.

He said the money, if paid, will help farmers pay for school fees and other needs.

"The farmers were happy with the proposed changes in the sector. They had even vowed to support every effort made by the state to reform the sector. They are however against promises that take too long," said Osur.

“We have a good government that for the first time is keen on seeing farmers make significant investments in the industry and get good returns. But they should move with the speed to ease our frustrations."

Kenya Association of Sugar and Allied Products chairman Charles Atyang said they waited for the money on 24th December in vain.

He said when they inquired, they were told the delay was occasioned by computer failure.

"To date, no farmer has been paid. We hope that these payments will be expedited as promised," Ayang said.

The Cabinet last year approved a framework to support millers to pay farmers' arrears and salary arrears.

According to the payment plan announced to farmers, this was to take 90 days.

The Cabinet also welcomed a resolution by the National Assembly to write-off loans owed and tax arrears by public sugar mills that amounted to Sh117 billion.

While on a tour in Migori county in October,  President Ruto said sugar companies in the country will not be privatised.

He said the revival of the sector will instead see the mills leased to people who will work under terms and conditions agreed upon.

Part of the agreement will see the old mills replaced with new ones to ensure efficiency.

Those taking over the mills on the lease agreement will also be required to ensure sugarcane farmers are paid on time.

"In the debt write off plan, we agreed in the Cabinet that we will pay farmers. There after, we are going to advertise for a leasing programme so there will be no privatisation,” Ruto said.

“We will ensure that whoever will lease these facilities, will serve us better and efficiently. Farmers must be paid on time and we will eliminate the challenges we have had in the past."

He said the people who have run down the sector will face the consequences.

The President said there was need to revive the sugar industry to stop the importation of sugar.

Agriculture and Food Authority has started the process to invite bids.

AFA director Jude Chesire said they will place the advertisement bids on the dailies by January for interested bidders with capacity to tender.

This is after the Parliament a vacated plan to auction the firms as was suggested by the Sugar Task Force Report.

The leasing timelines were also spelt out in the report.

“We are working round the clock to come up with a transitional management ahead of the leasing for between 20 to 25 years,’’ Chesire said.

He said writing off the Sh117 billion debts that held the move has necessitated the process.