President Uhuru Kenyatta has been told to extend bailout programmes to sugar firms in Kisumu County to make them more vibrant.
Muhoroni MP Onyango K’Oyoo said Chemelil, Miwani and Muhoroni require bailout for rehabilitation to improve their productivity. He commended President Kenyatta for saving Mumias from collapsing but urged him to extend the same to other factories in Kisumu.
K’Oyoo said the livelihoods of thousands of cane farmers depend entirely on the sugar industries.
Speaking in Kisumu Town on Tuesday, the MP said Muhoroni requires Sh3 billion, Chemelil Sh2 billion and Miwani needs at least Sh5billion for rehabilitation. He, however, rejected plans to merge Muhoroni and Chemelil sugar companies ahead of privatisation.
K’Oyoo said after the merger, the companies would be sold to a strategic investor in a government planned privatisation which will lock out farmers.
He said the merger is contained in the privatisation gazette notice with a claim that Muhoroni does not have enough nucleus estate for farming sugarcane to sustain the factory.
K’Oyoo said the issue has been a concern to cane farmers and other stakeholders which must be addressed conclusively. He added that Muhoroni Sugar Company is one of the sugar factories within Nyando sugar belt that had massive nucleus estate.
He accused some influential personalities, during the Nyayo era, of grabbing huge chunks of the factory land leaving it with a small section which cannot sustain it.
The MP wants the planned privatisation be put on hold and such land be repossessed to allow Muhoroni Sugar Company to be sold separately.
“We want the privatisation process halted so that farmers can pull resources together to buy shares and public-private partnership,” K’Oyoo said.
He further called for proper consultation bringing together all stakeholders including farmers and Kisumu county leadership to deliberate over the issue.