Agriculture Principal Secretary Paul Rono has issued a stern warning to the “sugar cartels” within Kenya’s industry, urging them to cease their ongoing court battles which are impeding the sector’s growth. Rono’s call for action comes amid persistent legal disputes that are stifling reforms and contributing to the industry’s decline over the past twenty years.
Ongoing Litigation Hampering Reforms
Rono expressed frustration over the continuous litigation by these influential entities, which he believes obstructs effective policy implementation. During his recent visit to the Muhoroni and Chemelil sugar factories in Kisumu County, Rono criticized the ongoing court cases, stating, “I am asking you people who represent a fraction of farmers to stop these endless litigations in court. It’s not paying off, only dragging us.”
Government Efforts and Debt Waiver
The Principal Secretary revealed that the government is actively working to revitalize the sugar industry and has recently approved a significant financial relief measure. The Cabinet has granted a waiver of Sh117 billion in debt owed by public sugar firms, providing them with an opportunity to focus on operational improvements and investments rather than debt repayment.
Impact of the Debt Waiver
With this debt relief, public sugar firms are expected to become more competitive against private millers. According to Jude Chesire, the Sugar Directorate boss, the clean slate will allow these firms to address financial burdens, increase productivity, enhance infrastructure, and improve product quality. Chesire and other officials view this as a crucial step towards sector revitalization.
Future Prospects and Industry Reforms
The debt waiver is anticipated to facilitate capital injections for modernization, expansion, and diversification of public sugar firms. Killion Osur, Secretary General of the Kenya National Sugarcane Federation, supports the reform measures, highlighting that the reduced liabilities will enable these firms to compete more effectively and invest in their growth.
