A high level stakeholders’ consultative meeting involving governors, senators, area MPs, Members of the County Assemblies, CeCs responsible for Agriculture, National Treasury, Ministry of Devolution, Ministry of Lands, the National Lands Commission, and representatives from the Ministry of Agriculture was held at Kisumu’s Tom Mboya Labour College.
The meeting aimed to move forward the ongoing discourse on the National government proposal for the privatization of some sugar industries.
This has been a follow up of the last consultative meeting held in Kisumu in January 2018.
Speaking during the meeting on behalf of Kisumu Governor Prof Anyang Nyong'o, Deputy Governor Dr Ochieng Owili emphasized that the privatization process should take serious consideration and opinions of governors from the sugar belt counties and their opinion leaders since the matter will have a direct impact on their constituents.
Owili reiterated that most sugar companies belong to the Lake Region Economic Bloc thus the need to consider the bloc as a key stake holder in revamping the sugar industry.
The remarks were echoed by Migori Governor Zachariah Okoth Obado who is also the Chairman for Agricultural Committee of the Council of Governors.
Governor Obado who cited vision 2030 and the agriculture development strategy said the goal for agriculture sector is to achieve innovative, commercially oriented and competitive agriculture production.
The chairman noted that the objectives of the strategy include creating and enabling environment for agricultural development, increased productivity, increased food and nutrition security, increased access to markets, institutional reforms and increased youth involvement in agriculture.
"There is need to learn from the previous privatization stories like the one for Mumias Sugar Company and pick some lessons from them," said Obado.
The National Lands Commission Chairman Professor Mohammed Swazuri pointed out fear factor as the major reason standing in the way of the privatization process due to the sensitivity of the land issue and the mistrust cultivated between the County governments and the National government.
He also made it clear that his commission had compiled a lands report by June 2016, making it easier for future compiling and submissions for the process should need arise.
He said this in response to the Nandi Governor Stephen Sang’s fears concerning meetings that have taken place this year regarding the same subject yet nothing had moved forward.
Owili disclosed that the Sh55 billion sugar sub-selector contributing 15% of the country’s GDP and providing livelihood to over 6 million people has also accumulated about Sh89 billion in debt.
The five key areas that the Lake Region Bloc will be seeking further clarity regarding the privatization subject include;
1. Land Issues
2. Public Participation
3. Shareholding framework between all parties involved
4. Sugar sector regulations
5. Previous debts write offs
The Monday meeting came up with a raft of resolutions and working roadmaps that will be implemented to move the process forward and which was delivered at a final press briefing by the Agriculture CS Mwangi Kiunjuri.
1. That the Privatization Commission conducts public participation at the individual factories and report back to the next high level consultative forum within two weeks.
2. That the sugar companies debt-write off be dealt with in the context of the transaction structures.
3. The NLC conducts searches for each of the companies to ascertain land ownership.
4. That the Ministry of Agriculture and Irrigation gazettes the Sugar Regulations by 31st March 2018.