The Cabinet has set aside plan to privatize State owned sugar companies, instead approving the revival and commercialization of Nzoia, Chemelil, Miwani, Muhoroni, South Nyanza and Mumias Sugar companies.
During a meeting held on Tuesday and chaired by President William Ruto, the cabinet noted that the decision sets the sugar sub-sector on a path of renewal. If parliament approves the proposal, the State-owned entities would be operated under a lease and operate framework.
Kenya in October 2015 announced it had written off 39.7 billion shillings owed by state-owned sugar companies, aiming to ease their planned privatisation.
The five companies are in need of modernisation to survive competition from the entry of other sugar producers.
To address the high retail price of sugar linked to acute cane shortage in the sugar belt regions, Cabinet sanctioned the extension of the framework for duty-free importation of milled sugar to bridge the supply deficit.
The meeting held at State Lodge, Sagana considered various bills, policies, State Programmes, and State interventions that form part of the administration’s plan for a better Kenya under the Bottom-Up Economic Transformation Agenda (BETA).
“These actions strengthen our socio-economic fabricby fostering inter-generational equity through an improved framework for social protection coupled with revival of State Corporations within the agriculture, petroleum and energy sectors,” the Cabinet noted.
The cabinet considered and approved the National Labour policy, which is expected to enhance the country’s international presence and influence better coordinating labour migration through the official classification and regulation of all forms of labour.
According to the cabinet, it will have added benefit of increasing the number of Kenyans working lawfully and safely abroad, which in turn is expected to result in doubling Diaspora remittances to Kenya.
“The policy positions our nation’s human resource at the heart of our growth strategy by addressing internal systemic inefficiencies that deny many Kenyans the opportunity to explore opportunities on the international stage.”
The cabinet also sanctioned a fresh wave of registration of persons under Inua Jamii Safety Net Programme of senior citizens, persons living with disability, and vulnerable households. The process of onboarding the new registration of new members will commence on 1st September, this year.
Currently, the Inua Jamii porogram benefits 1,233,129 Kenyans, including 353,000 orphans and vulnerable Children, 833,129 elderly citizens, and 47,000 persons with severe Disabilities.
Government Invites Bids for sale of 5 sugar companies – Kenyan Wallstreet
