Leaders from Western Kenya have said cheap contraband sugar will ruin the region’s economy and plunge it into crisis.
Huge amounts of illegal sugar have been discovered in diff erent parts of the country, further threat- ening the ailing sugar industry. Th e uncontrolled illegal importation has sent leaders, farmers and unions in the sector into a panic.
An estimated 10 million people depend directly or indirectly on sug- arcane farming. The industry employs more than 20,000 workers permanently and on contract, the Kenya Sugarcane Plantations and Allied Workers Union secretary general Francis Wangara said.
Mumias sugar has already an- nounced plans to lay off 900 employees as part of restructuring.
“What is happening is dangerous for the economy of Western coun- ties since traditionally every employed person supports 10 others.
Death of the sugar industry will spark a crisis,” Wangara said.
Western leaders are afraid the situation could lead to total shut down of the sector, triggering the worst economic crisis ever.
Top millers Mumias and Muhoroni are closed due to unpaid bank loans and inadequate supply of cane. Jobs for thousands of employees are at risk.
The sector faces also faces unprecedented poaching of cane by rival millers and failure by state- owned companies to pay farmers. MPs Ayub Savula (Lugari), Tindi Mwale (Butere), Emmanuel Wangwe (Navakholo) and Justus Murunga (Matungu) have demanded stern action by the government to permanently end sugar imports.
Other leaders who have expressed concern are Hurry Wamubeyi (member of the Luhya Elders’ Forum) and Ibrahim Juma, chairman of Kenya National Federation of Sugarcane Growers.
“As leaders from this region we’re worried that the sugar industry is headed for collapse. We are urging the government to pump more resources into state- owned sugar companies so they can produce more since the Comesa bloc lacks enough supplies,” Savula said.
Wamubeyi asked elected leaders from Western to work together to safeguard the sector to avoid an imminent economic and social crisis.
Mwale said corruption is to blame for illegal imports. He wants the government to arrest and charge the big fish involved in corruption instead of diverting attention by crucifying small fry.
Wangwe said the government should address illegal sugar importation with the same zeal it fought illegal importation of macadamia.
“As members of the Agriculture committee, we have summoned the management of West Kenya this Thursday to shed more light on illegal sugar discovered in their warehouses in Webuye on Wednesday,” Wangwe said.
At least 100, 000 metric tonnes of illegal sugar were impounded in Eastleigh, Nairobi, a week ago. Another 2, 450 tons of contraband sugar worth Sh250 million was discovered in a warehouse belonging to Rai Paper in Webuye on Wednesday.
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Another 2, 000 bags were impounded in Matuu in Eastern on Saturday. Savula said crime is already on the rise as many workers at Mumias miller were laid off .
Cotu secretary general Francis Atwoli asked the government to shut down all millers operating illicitly. But Juma rejected Atwoli’s suggestion.
“You can’t talk of closing all non-state millers because that would create more joblessness within the sugar belt,” he said.
Juma said the sorry state of the sugar sector threatens stability of the region as over 300, 000 cane farmers have lost livelihoods.
The millers are unable to pay them and the market is saturated with cheap imports. Juma asked the government to protect the subsector to avert an imminent crisis.
Kakamega Governor Wycliffe Oparanya has said the illegal sugar imports could be a scheme by a segment of the Kenyan leadership to cripple Western economy for political reasons.
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