September 16, 2015
Sugaronline | http://goo.gl/IPQSfg
The process of privatizing five state-owned sugar companies should be taken back to the drawing board so as to carry out more consultations with all stakeholders, according to the Kenyan Broadcasting Corp.
This is according to the Chair of the Agricultural Committee of the council of governors, Nderitu Gachagua who says for privatization to be undertaken smoothly, the process has to be revised to involve the input of the public and sugarcane farmers.
In May this year the government made public its intention to privatize Chemelil, Nzoia, South Nyanza Sugar, Muhoroni and Miwani Sugar companies.
Under the deal, the government was to sell its 51% stake in each of the five sugar companies to strategic investors with a track record of managing sugar companies.
A further 24% stake in the companies was to be sold to employees and farmers while the remaining 25% stake being retained by the government.
However, the process has faced opposition from a section of leaders who insist that the privatization process should not be rushed.
Gachagua says the government should undertake wider consultations especially the public and sugarcane farmers.
Acting Agriculture Cabinet Secretary Adan Mohamed underscored the need to privatize the sugar companies noting that it would encourage healthy competition of firms posting profits and not losses as is the current situation.
A total of 600,000 tonnes of sugar is produced annually, compared with the annual consumption of 800,000 tonnes.
The shortfall is imported from the COMESA region.