Sugar imports have dealt a death blow to West Kenya Sugar Factory, which is the only stable sugar factory in the whole of Western Kenya. We have seen politicians defending the investor over cheap importation of sugar, because they are actually part of the scheme to kill the economy of western Kenya.
The owner of West Sugar Company was given a licence by the Sugar directorate to import sugar from Brazil. Imported sugar is $3,000 per tonne, while Kenyan sugar is $7,000 dollars per tonne. Look at the difference. If you import Brazilian sugar, you are killing the market for existing sugar factories because they cannot compete.
In essence, the owner of West Kenya is investing in imports while neglecting local production. This will kill the market for local sugar factories, making it hard to pay the 3,500 factory workers because sugar imports hurt local sales. It will also impact annual payment for more than 6,000 sugar farmers who depend on that factory directly.
If the owner has imported sugar, the government should cancel that licence immediately and instruct the owner of West Kenya to concentrate on buying cane in Malaba so local farmers can benefit.
We are seeing the same line that Mumias took when it imported sugar, which was stuck at the port and incurred demurrages it couldn't pay. Comesa regulations require that if there is a local market deficit, we must import sugar from Comesa countries, not from non-Comesa countries like Brazil.
But officials and business people have misused the opportunity, killing our local sugar factories. Mumias sugar is in the mortuary because of sugar imports. Chemelil is in ICU, Muhori is in ICU, Sony Sugar is in HDU for lack of funds to finance farmers’ activities, and moribund equipment.
We want the Sugar Development Fund to be brought back to enable factories get loans and to finance farmers. If President Uhuru is serious about manufacturing, he should stop sugar imports to save our sugar factories.
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The Lugari MP spoke to the Star