In a significant response to the ongoing challenges faced by sugarcane farmers, President William Ruto chaired a pivotal meeting at the Sagana State Lodge on Tuesday, during which crucial decisions were made to rejuvenate the sugar industry in the country.
The central focus of the Cabinet meeting was the consideration and subsequent approval of an extensive program aimed at revitalizing and commercializing state-owned sugar companies.
"IN RESPONSE to the plight of Sugarcane Farmers, Cabinet considered and approved the programme for the revival and commercialization of State-owned Sugar Companies," the Cabinet dispatch read.
The entities in question include Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (currently under receivership), Muhoroni Sugar Company (also in receivership), South Nyanza Sugar Company, and Mumias Sugar Company (under receivership).
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This decision by the Cabinet marks a pivotal shift in the trajectory of the sugar sub-sector. Notably, it entails the reversal of a previous Cabinet decision to privatize state-owned entities within the sugar sub-sector.
The newly endorsed approach involves the operation of these state-owned entities under a lease-and-operate framework, ushering in a new era of opportunity and progress for the sector.
Addressing the pressing issue of skyrocketing retail sugar prices driven by a severe shortage of sugarcane in the nation, the Cabinet introduced a strategic measure.
It approved the extension of the framework for duty-free importation of milled sugar, a move intended to bridge the critical supply deficit.
"TO ADDRESS the high retail price of sugar fuelled by an acute cane shortage in the country, Cabinet sanctioned the extension of the framework for duty-free importation of milled sugar to bridge the supply deficit," the dispatch read.
This step is anticipated to provide immediate relief to consumers grappling with the escalating cost of sugar.
The decisions made during the Cabinet meeting now await the crucial step of receiving approval from the Parliament.