Counties

MPs oppose plan to give sugar factory section of forest land

tobiko

Environment secretary Keriako Tobiko. FILE PHOTO | NMG

The proposed excision of 120 acres of forestland for construction of a Sh3.5 billion ($35 million) sugar factory in Kisii County has taken a new turn after the National Assembly asked the Senate to seek its nod before granting any approval.

Kareke Mbiuki, who chairs the National Assembly committee on environment, said his team will rally behind Environment Secretary Keriako Tobiko who declined to give Kisii Governor James Ongwae the nod for the excision of Nyangweta forest.

Mr Tobiko on Wednesday told the Senate that key environmental issues including reduction of county forest cover from the current 2.6 per cent to below two per cent, drying up of several rivers and management of affluent from the proposed sugar factory remain unresolved.

“We are solidly behind Mr Tobiko position that not an inch of forestland should be excised. We are currently facing destruction of our water towers due to past decision of excising forest land to put up tea factories like in Mau and creation of dams,” Mr Mbiuki said.

“We are 100 per cent against attempts by a sugar investor to be allocated Kisii forestland to put up a factory. We want the Senate to first seek National Assembly concurrence before any approval. We are as a committee equally seized of this matter.”

READ: Keriako fails to give Kisii nod for Sh6bn sugar mill in forest

The new twist came as Kanoria Group, the Indian firm seeking to put up the factory, sold its business plan to the Senate committee on Land.

Kanoria general projects manager Joshi Hiha told Senators that the factory will not interfere with the entire 120 acres of forest but will only acquire 50 acres where the factory will stand.

“We intend to put up a factory with capacity to crash 2,500 tonnes of cane daily. This will be upgraded in phases to 5,000 tonnes daily. We will also generate 18 megawatts through a cogeneration power plant that will be expended to 30 megawatts in five years,” Mr Hiha, who was accompanied by governor Ongwae, told Senators on Thursday.

“We will also put up a plant to produce ethanol from molasses. We will deploy state of the art technology that will manage effluent.”

READ: Indian firm to build Sh5bn sugar complex in Kisii

Kanoria Group plans to inject $10.5 million in equity and $24.5 million in debt into the construction of the factory whose ground breaking is set for mid-2019.

The factory is projected to be commissioned in mid-2021 and is expected to process 750,000 tonnes of sugarcane as well as generate 86,250 tonnes of sugar and 80 million Kwh of power annually.