Millers representatives who spoke to the Sunday Nation objected to the recommendations by Kenya Sugar Manufacturers Association (Kesma) on delineation of sugar zones into five regions and have accused the association of ignoring their concerns.
Kesma had proposed zoning of cane into five regions namely Central region (Siaya, Kisumu, Nandi and Kericho); Upper Western region (Bungoma, Kakamega, Trans Nzoia, UasinGishu and Nandi); Lower Western region (Mumias and Busia); Southern region (Migori, Homa Bay, Kisii and Narok) and Coastal region (Kwale, Tana River and Lamu).
Woes facing the sugar industry are not about to abate after a section of private millers in western Kenya disowned recent draft regulations that among others, set zoning as one of the pillars. They now say the rules are meant to benefit State firms at the expense of privately owned factories.
And now two organisations both championing interests of the sector are bitterly torn apart with one being accused of presenting views that had not agreed upon.
On Thursday, the private companies sided with a group of farmers opposed to the rules going as far as threatening to seek legal redress to ensure they are not implemented.
West Kenya Sugar Company Limited, Sukari Industries and Olepito Sugar Company Limited, all linked to businessman Jaswant Rai but who are independent members of the Kenya Sugar Manufacturers Association (KESMA), disowned their lobby, saying it presented views without consulting them.
The trio wrote to the Agriculture and Food Authority, a government agency charged with implementing policy on sugar, saying they are gravely concerned by the submissions made by their association.
The millers representatives who spoke to the Sunday Nation objected to the recommendations by Kenya Sugar Manufacturers Association (Kesma) on delineation of sugar zones into five regions and have accused the association of ignoring their concerns.
Kesma had proposed zoning of cane into five regions namely Central region (Siaya, Kisumu, Nandi and Kericho); Upper Western region (Bungoma, Kakamega, Trans Nzoia, UasinGishu and Nandi); Lower Western region (Mumias and Busia); Southern region (Migori, Homa Bay, Kisii and Narok) and Coastal region (Kwale, Tana River and Lamu).
“In the course of the said meeting, the draft sugar regulations came up for discussion but they were not debated in detail and no resolutions/positions of millers were agreed upon,” read the statement signed by West Kenya Sugar Company Limited Managing Director Tejveer Singh Rai.
The miller said issues of sugar zones and the farmer’s freedom to contract remain controversial among all stakeholders.
“The proposed regions bear no regard to the installed capacity and long-term viability of sugar factories in the proposed regions. The proposed delineation of regions seeks to give advantage to some sugar factories in central region (Siaya, Kisumu, Nandi and Kericho) and in Upper Western Region (Bungoma, Kakamega, Trans Nzoia, Uasin Gichu and Nandi) and also in Lower Western region (Mumias and Busia),” read the letter.
Farmers termed the move authoritarian, punitive and discouraging the policy of willing buyer willing seller.
Divisions within the millers association appeared centred on private versus State-owned with the latter campaigning for adoption of rules to protect their sourcing areas. Private millers say farmers should be free to sell to whoever offers a better deal.
Sony Sugar Company board chairman Charles Owino Likowa said the cost of sugar is set to remain high due to demand supply issues. "But we hope the situation will be short-lived so that consumers do not suffer for a long time," he said in Migori Town.
A section of cane farmers in Kisumu said the restriction will deter upcoming investors who want to set up new factories.
“This is an illegal document as it was generated without the input of critical stakeholders. We promise to take the matter to court by end of this (last) week,” said a farmer Atiang’ Atyang’ from Chemelil. He spoke to reporters at Sunset Hotel.
According to Clause 10 (5) of the draft regulation, no new factory is allowed to operate in another miller’s registered zone.
But Mr Atyang’ pointed out that the constitutional court ruling in Kakamega declared the Sugar Act, which prohibited establishment of another mill within a 40 kilometre radius from an existing mill as illegal.
“The draft opens the leeway for non-performing millers to edge out well performing millers who are harvesting, delivering and paying farmers in good time,” he said. Agriculture Cabinet Secretary Mwangi Kiunjuri had asked stakeholders and wananchi to submit their views or comments to him through the Agriculture and Food Authority before the publication of the draft Sugar Regulations, 2018.
While saying Kesma is an informal and ad hoc association of sugar millers whose representatives meet on need to be basis to discuss various issues affecting the sugar industry and to lobby for common interests of sugar millers in Kenya, West Kenya Sugar Company Limited called for further consultation on the draft before it is published.
The miller said a meeting called earlier by their association did not conclusively agree on the issue and that contentious views or positions and legally unsound proposals were submitted as the purported common views of Kesma members.
“It is highly presumptuous of the association’s chairman to not only submit such a position but also proceed on to propose the means of zoning — through regions,” said the letter.
The miller now joins some farmers who have been opposing cane zoning. Kenya National Federation of Sugarcane Farmers National Treasurer Stephen Narupa said such a move would only work against farmers by.
“This is monopoly disguised as zoning. We want a free market where farmers will choose where to sell their cane. Farmers are free to contact with high paying miller,” said Mr Narupa.
He said farmers have for a long time suffered under poor policies formed by the government to regulate the sugar industry. “It is unfortunate that our concerns have often fallen on deaf ears yet without the supply of our cane, we would not have any sugar produced in our country,” said Mr Narupa.
Mr Lambert Ogoch, a farmer from Busia County, said realisation of two sugar companies in Busia is in jeopardy due to the new rules. He termed as unfortunate that the residents of Nasewa continue to languish in poverty after being forcefully evicted to give up their land for the construction of two sugar factories at Olepito and Busibwabo.
“The members of Nasewa community were forcefully evicted from their land of 341 hectares and are hoping that they will not be taken back to Mumias Sugar Company,” he said.
The land was acquired by the State in the 90s and given to Busia Sugar Company for construction of a sugar factory. The farmers’ representatives drawn from Kisumu, Nandi and Kericho counties have also petitioned Kiunjuri, Office of the Attorney General and Agriculture and Food Authority to rethink the matter.
— Additional reporting by Elisha Otieno
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