The government has moved to ease the pain of sugarcane farmers owed nearly Sh2 billion by public millers, majority coming from the western part of the country.
The Cabinet approved a framework to support the millers to pay farmer arrears and salary arrears through a 90-days payment plan. To address the challenges that have bedeviled sugarcane farmers for decades, the Cabinet also welcomed a resolution of the National Assembly approving the writing-off of loans owed and tax arrears by public sugar mills amounting to Sh117 billion.
Last week, while on a tour of Migori County, President William Ruto ruled out privatization of sugar factories, noting that it’s not a viable option as it would result in private firms assuming ownership of farms.
He instead said the Government will lease the five struggling sugar factories in a bid to revive the ailing sector. Nzoia, South Nyanza (Sony), Chemelil, Mumias, Muhoroni and Miwani Sugar companies are some of the public millers either struggling financialy or already closed shop.
The Government, he added, will ensure prudent management of the factories to safeguard the interests of farmers.
He noted that resources from the private sector will be instrumental in upgrading the factories’ facilities to enhance efficiency.
“We will agree with them to install new machines and pay farmers on time,” he said.
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