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Kenya: State Owned Sugar Millers Told to Prudently Utilize Sh1.5bn Subsidy Funds

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4 years ago

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Kisumu — Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) Friday urged the five state-owned Sugarcane mills to ensure the Sh. 1.5 billion directed to the sugar industry as part of the economic stimulus intervention is well spent.

KUSPAW General Secretary Francis Wangara told journalists at a press conference that the disbursement which was announced by President Uhuru Kenyatta during the 2021 Mashujaa Day celebration is not enough but remains a good gesture from government.

Kenyatta, in his speech during the fete, directed the National Treasury to disburse the funds which will be be appropriated towards factories maintenance and payment of farmer’s arrears.

“This is the first time we have had a clear allocation of funds to the sugar industry,” Wang’ara said.

Wangara told the management of the mills to ensure they dedicate the funds in fixing breakdowns in the factories and paying farmers.

The mills include Nzoia, Chemelil, Miwani, Muhoroni and Sony.

Efforts by the government to lease out the mills after abandoning the privatization process have hit a snag following numerous court cases.

“The mills should be fixed and they start operating, from the sale of sugar they can start paying farmers,” he said.

However, he called for an open approach in utilizing the funds raising concern that some millers could divert the cash for other purposes.

“We want every stakeholder on board to ensure prudent use of these funds, because some management will end up blowing the funds in unnecessary ventures,” he said.