Kenya: Sugar Industry is Well Protected, House Told

The Nation - Nairobi Kenya - April 28, 2006 - Friday 28 April 2006

The sugar industry is stable and is not about to collapse, the House was told.

Agriculture minister Kipruto Kirwa said contrary to allegations, the industry was on an upward swing.

He enumerated the measures the Government had put in place to protect the local industry, top of which was the implementation of measures allowing the importation of only 200,000 tonnes of sugar from Comesa every year.

Rules of importation

Other measures are the implementation of 2003 regulations administered by the Kenya Sugar Board and amended by Legal Notice No 2 of 2006 setting the rules of importation.

Mr Kirwa said 96 companies had so far been licensed to import sugar. Of these, 63 were registered to import raw sugar and 33 to import white, refined sugar.

Since January, 45,349 tonnes of sugar had been imported.

The minister was answering Prof Ayiecho Olweny (Muhoroni, Narc) who wanted to be told which companies had been licensed to import sugar and the measures the Government had taken to protect the local industry.

Prof Olweny also wanted to know what rules governed the exportation of agricultural commodities from one Comesa country to another.

Mr Kirwa said all agricultural commodities from Comesa countries must satisfy internationally accepted regulations.

The commodity must be wholly produced by the member country to attract duty free status, and there must be no trans-shipment from one country to another. Any value added commodity must also attract duty of 35 per cent.

Mr Mwancha Okioma (Kitutu Masaba, Ford People) said the local sugar industry was headed for collapse unless it was shielded from cheap imports.

Answering another question, Mr Kirwa said the Government would consider extending the grace period given to pastoralists to repay money owed to the Agricultural Finance Corporation.

Repay loans

He said the Government was aware that the current drought had adversely affected the ability of farmers to repay the loans but each case would be considered on its own merit.

Mr Kirwa was answering Mr Katoo ole Metito (Kajiado South, Narc) who wanted to know whether the minister was aware that AFC had written demand letters to farmers in Oloitokitok who had defaulted on payments.

Mr Metito also wanted to know if the farmers would be given a grace period of one season to enable them recover from the effects of the drought.