Sale of five State sugar companies delayed over farmers’ petition

The privatisation of five State-owned sugar millers is set to delay after MPs adjourned debate on a motion seeking approval for sale of the companies at a time when they are facing a major threat from cheap imports.

The government plans to sell Nzoia, South Nyanza, Chemilil, Miwani and Muhoroni companies to strategic investors who will control 51 per cent of the sugar millers.

Tongaren MP Eseli Simiyu rose to demand that the report be amended before passage, saying the planned privatisation will occasion losses to both farmers and the government.

This followed the presentation of a public petition to the House seeking to have land on which the mills stand reverted to the government or communities.

Sigowet/Soin MP Justice Kemei tabled the petition on behalf of a section of farmers who supply cane to Muhoroni Sugar Company, asking Parliament to intervene to have the land reverted to the government before the miller can be privatised.

He said the government should hold the land in trust for the people who surrendered part of their farms for setting up of the mill.

Mr Kemei said the part of the land was donated to the company, which is under liquidation, and privatising it would mean that the land will go to private hands.

He wants the Finance, Planning and Trade committee to intervene and have the 2,264 hectares of land acquired from locals reverted to the farmers.

The MP said land measuring 3,977 out of the 9,119 hectares which is under cane is situated in Sigowet constituency. Mr Eseli said the 10th Parliament recommended write-off of sugar millers’ debts as a way of returning them to profitability.

“There was a reason why these sugar companies were set up. The government compulsorily acquired land to create nucleus estates. Nzoia sugar company nucleus land alone is worth Sh9 billion,” he said.