President William Ruto on Wednesday outlined the government’s plan to reform the sugar industry in Western Kenya.
Speaking when he officiated the inaugural Kakamega International Investment Conference in Kakamega on Wednesday, Ruto said that the reform process has three components.
He said that the reform will include change of management, payments to farmers and cane development.
He said that the management of sugar millers would be changed by leasing the state-owned millers to private investors.
“Let me confirm to the people of Kakamega that we are going to reform our sugar sector. Our reform process is underway and what we have wanted to do for the last 25 years we must conclude this year,” he said.
“Like all other farmers, sugarcane farmers will earn bonuses like their counterparts in the coffee and tea sectors. I know that some characters have gone to court to sabotage this process because they are used to it, but I want to tell them that it is not about to stop. Mambo ni matatu,” the head of state added.
He said that the process of reforming the sugar industry must be brought to a logical conclusion and free sugarcane farmers from corrupt cartels.
He said that the government will set aside funds to support farmers on cane development.
Ruto said that Kenya was spending close to Sh500bn to import sugar, edible oils wheat and other commodities that can be produced locally.
“My commitment and that of this administration is that we must reverse this,” he said.
He said that the government is committed to achieving diversification of industries in Western Kenya as a measure of demonstrable commitment to supporting other diversified industries in Kakamega.
Mining and Blue Economy Cabinet Secretary Salim Mvurya committed a Sh5.8bn investment programme for a gold refinery in Kakamega so that gold can be mined and processed and create jobs.
Ruto said the ministry had also completed a Sh2.5bn investment programme for a granite factory in Vihiga.
He said that Cotton is going to be a very critical part of the government investment programme for the Western region.
“We’re currently distributing 60, 000 metric tons of carton seeds to farmers in 22 counties and we will distribute another 500 metric tons next month," Ruto said.
"There is a big opportunity for value addition in this sector. Working with Rivertex, we have now adjusted the prices from Sh52 that was paid last year for a kilogram to Sh72 so that we can incentivise our farmers."
