Sugarcane stakeholders hailing from the Nyando sugar belt have vehemently rejected the national government’s proposal to merge Chemelil and Muhoroni sugar companies into a single entity as part of sweeping reforms within the sugar sector. In a decisive stand taken prior to their appearance before the National Assembly committees on finances, national planning, agriculture, and livestock, these stakeholders made it abundantly clear that they will not entertain any discussions regarding this merger.

Leading the charge against the merger was Muhoroni Member of Parliament, Onyango Koyoo, who stressed their unwavering opposition to the consolidation of the two state-owned mills. “We have categorically rejected any plans to have the two factories merged into one,” asserted MP Koyoo.

Koyoo further argued that there is no compelling reason to push for the government’s merger agenda. He highlighted that the mills were once operating efficiently and that the current predicament stems from the dire condition of their machinery, which significantly hampers production. “The government should seek a solution by procuring new machinery instead of relying on mill mergers as a convenient shield,” he urged.

The MP also voiced the concerns of local farmers who are unwilling to accept the merger. Many of them contend that land allocated for cane nucleus growth has been unlawfully seized, contributing to the perceived necessity for this merger. “If the issue revolves around insufficient land for the mills, prompting the merger proposal, farmers beseech the government to reclaim all illegally acquired land in the area,” Koyoo added.

During a press conference held in Kisumu on Tuesday, Koyoo emphasized that the resolutions made by the farmers should be taken into serious consideration if the government is genuinely committed to rejuvenating the sugar sector.

Noah Opiyo, the Secretary of the Kenya National Federation of Sugarcane Farmers, Muhoroni branch, placed blame on the government’s lax enforcement. He contended that numerous factories have been established without a sufficient supply of cane, while the government turns a blind eye, thus undermining the sector’s viability. “We’ve witnessed weighbridges sprouting up everywhere, some perilously close to government mills, creating unfair competition. The installation of weighbridges must be regulated,” Opiyo demanded.

Farmers are calling upon the government to involve them in the leasing process but insist that only the factories should be leased, not the land. “We will oppose the leasing of both factories and land because tomorrow the lessee could halt cane crushing and shift into dairy farming,” cautioned John Kipngetich, a farmer in the Miwani area.

Additionally, MP Koyoo urged President William Ruto to intervene in court cases related to Miwani land, drawing a parallel to the actions taken concerning the Mumias sugar company. “Farmers believe President Ruto should replicate the steps he took for Mumias sugar company in the case of Miwani land currently in court. We want this issue resolved,” he asserted.

As the debate over the proposed merger continues to intensify, it remains to be seen whether the government will reconsider its stance and address the concerns raised by these impassioned stakeholders in Kenya’s sugar industry.

Photo: Benjamin Sakwa, Standard

By: Montel Kamau
Serrari Financial Analyst
5th September, 2023