Some
have blamed it on cheap imports and others have blamed it on cane poachers and
COMESA regulations. Whatever blame is attached to the sector, many state-owned factories
are going down the drain.
The
collapse of sugar industry in Kenya is spinning out of control. Several
factories are closing down. As an example, in the Chemelil sugar growing zone
and its environs, only Chemelil Sugar Company is still running. The future of
Chemelil is bleak due to mushrooming sugar cane poachers in the company’s cane catchment.
As at now, many farmers are selling their cane to cane poachers who are located
around Chemelil and Awasi areas.
Soin
Sugar Company, a company located close to Chemilil, has closed down due to cane
poaching. Muhoroni Sugar Company is struggling to survive and its collapse is imminent.
Key Factors Causing
Collapse of Sugar Sector
A
combination of factors is causing publicly owned sugar factories to close down.
Most of the public companies have been unable to pay farmers. Therefore,
sugarcane farmers have opted to sell their produce to poachers who pay in good
time. The cane poachers are also offering farmers incentives such as
fertilizers, soft loans and advance payments.
The
imported sugar has not contributed so much to the collapse of sugar factories
to the extent that sugar cane poachers have done. The sugar cane poachers are
to a small extent contributing positively to the uplifting of the farmers
livelihood.
Mismanagement
is the main culprit that caused many state-owned factories to be unable to pay
farmers. Therefore, for the first time since independence, the Government has announced
the privatization of the key sugar factories such as Muhoroni, Nzoia Sugar,
Chemelil, Miwani amongst others.