Uhuru Bans Sugar Importation | Kenyan_Report

The country’s sugar industry has been on its knees for a while now and weeks after leaders from the western sugar belt raised concern over high imports that had rendered local factories helpless, looks like Calvary has just arrived in time.

On Thursday, The agriculture Cabinet Secretary Peter Munya made the announcement as he pronounced a raft of reforms aimed at streamlining the sector that has for long been performing dismally with immediate effect the CS announced the suspension of trading licences as a move to curb influx of cheap sweetener in the domestic market, which has impacted negatively on local farmers.

“We have also suspended pre-shipment approvals and extension of all sugar import permits until further notice,” said Mr Munya.

“The uncoordinated importation of brown sugar has rendered Kenya’s mills uncompetitive. Ex-factory prices for the mills remain at Sh85,260 for a tonne compared with the CIF price of Sh60,117 for the same quantity,” he added..

With this move in places means sugar prices will now go high in the sense that the cheap imports normally check on the high cost of the sweetener locally. Normally, as a country, Kenya is allowed to import 350,000 tonnes from the Common Market for Eastern and Southern Africa (Comesa) to fill the local deficit.

In a move to help increase farmers’ income and improve competitiveness and service delivery in the sugar sector the CS of agriculture pointed that the state will now be leasing State-owned sugar mills to private investors for a period of 20 years to process and develop cane on farms owned by these millers such as Chemelil, Muhoroni ,Sony, Miwani and Nzoia .

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