Governors want a 20 percent share of the state-owned millers with the remaining 80 percent to be issued to farmers under proposed ownership, a move likely to hamper the government’s plan in the privatisation of sugar factories.
The sugar summit that ended last week has proposed the allocation of 20 percent of the national government share in state-owned millers to the county governments with 80 percent going to farmers under the outgrowers association.
The governors argue that with the devolution, the counties should play a big role in the management of factories.
Last month, the cabinet proposed leasing the state-owned sugar mills to private investors to bring them back to life and increase productivity.
“With devolution, County Governments should be involved in the management and development of the sugar sector. After writing off the liabilities, counties should assume 20 percent of government shareholding with 80 percent going to farmers through out grower organisations,” said the governors.
The recommendation was made in Kakamega on Saturday at the end of a three-day sugar conference that brought together county officials from different sugarcane growing zones under the umbrella body of The Lake Region Economic Bloc (LREB).
There are five government owned sugar millers which include Nzoia, Miwani, Muhoroni, Chemelil and Sony.
The county bosses want outgrower organisations to be re-introduced and strengthened through training and capacity building using funds from the Sugar Development Levy (SDL).
The county bosses want the Sugar Bill that is currently before parliament to be fast-tracked. The new law, among other things, has proposed the re-introduction of the SDL.
Previously, all the state-owned millers used to have outgrower associations but they fizzled out due to poor management.
The counties also want the national government to appoint crop inspectors with clear roles to support agricultural extension services provided by county governments and millers.
Farmers have for long decried that the lack of extension officers has affected their productivity as they miss access to agronomic services that would spur their production.
They also want the government to establish a fund where farmers can access affordable credit for cane development and procurement of inputs.
This is to save growers from costly input supplies that they get from millers, which ends up wiping all their earnings as factories deduct the amount spent on supplying them with seed and fertiliser.
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