Kisumu County Governor Anyang’ Nyong’o has urged the national government to prioritize privatizing state-owned sugar companies to enhance their performance and increase profitability.
The governor stated that the government-owned sugar mills have continued to incur huge losses and accumulated debts over the years.
Further, Nyong’o proposed that the struggling sugar milling factories in the Nyanza sugar belt be leased to private investors to turn around the sector's fortunes.
“I urge the government to come to the rescue of cane farmers by making a decision to lease these factories to revive the sugar sector,” he said.
Nyong’o pleaded with President William Ruto’s administration to expedite the implementation of the Sugar Taskforce Committee formed by former President Uhuru Kenyatta's report’s recommendations released in 2020.
The governor, who was a task force member, said apart from proposing the privatization of public sugar mills, he also provided other recommendations that aimed at reviving the sugar industry.
Further, the governor urged the government to inject cash into the sugar industry to cushion the over 100,000 farmers in the lakeside region from perennial losses.
“Let us give our farmers some form of handshake by injecting some money to cushion them from the losses they have incurred for many years to motivate them to continue with production,” he said.
The governor made the remarks while addressing stakeholders during the inaugural Sugar Industry Innovation Symposium in Kisumu County.
The County boss observed that the sugar sector is considered a key driver in boosting the region’s socio-economic development by promoting the establishment of roads, schools, shopping centers, and health facilities as well as a source of employment for the locals.
However, Nyong’o decried that the sector's challenges have undermined its profitability and sustainability, forcing farmers to abandon cane farming for alternatives.
The region has five state-owned sugar mills, which include Nzoia, Chemelil, Miwani, Muhoroni, and South Nyanza Sugar Companies.