COMESA PROTOCOLS

Don't lease sugar factories, privatise them instead — Savula

Lugari MP says leasing will flood the market with imports and defeat the meaning of reviving the sector

In Summary
  • The legislator said that the Comesa protocol specifically recognises privatisation and not leasing.
Lugari MP Ayub Savula at Kochwa village in Navakholo where he donated gumboots to Community Health Volunteers on Saturday August 22, 2020
Lugari MP Ayub Savula at Kochwa village in Navakholo where he donated gumboots to Community Health Volunteers on Saturday August 22, 2020
Image: HILTON OTENYO

 

Lugari MP Ayub Savula has cautioned against leasing sugar factories, saying such a move will flood the market with imports.

Savula on Saturday said leasing the five state-owned sugar factories contravenes the Common Market for East and Southern Africa on the regulation of the regional market.

He said the Comesa protocol recognises privatisation and not leasing.

"If we go the leasing way the regional market will open the flood gates for sugar importation that will frustrate the very aim of reviving the ailing sugar sector," Savula said.

The MP said no investor will be willing to put money in the almost collapsing factories for the proposed lease period because recovery would be difficult.

The government through the Food and Agriculture Authority (AFA) has started the process of leasing out the five millers for a period of 25 years.

But the leadership in the former Western province is divided on the planned leasing of Nzoia, Chemelil, Miwani, Muhoroni and South Nyanza sugar factories to investors.

While governors from the region support the government plan, ANC leader Musalia Mudavadi, his Ford Kenya counterpart Moses Wetang'ula and a majority of MPs from the region are opposed to the plan.

Wetang'ula and Mudavadi have claimed the plan could be a customised deal to sell the millers to specific investors.

Navakholo MP Emmanuel Wangwe said though he supports the leasing process, only factories should be leased out and not land on which they stand.

 

Edited by P.O

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