- By requiring importers to demonstrate the unavailability of the sugar locally, the Bill aims to safeguard local producers from substandard foreign competition.
- This protection is crucial for ensuring that local farmers receive fair prices for their produce and can compete on an even playing field.
Image: FILE
The enactment of the Sugar Bill, 2022 is a critical development that sugarcane farmers and stakeholders have been waiting for too long.
The Bill is with the Mediation committee, who have already given public assurance that it has given it priority to be cleared for President William Ruto to sign it into law. That committee came into being after the some members of the National Assembly were allegedly compromised to doctor the Bill.
It was indeed the Senate that raised the red flag that some critical parts of the proposed law had been interfered with or outrightly expunged by the National Assembly, hence the Senate had to intervene to ensure that the document that was given to the President to sign into law was above board.
Indeed it is extremely important that once this Bill lands onto the President’s desk, he should not hesitate to sign it into law because it is the lifeline of millions of cane farmers. It's also the lifeline to the survival of the country’s sugar industry, millers who invested billions of shillings in the industry and other stakeholders.
It was an open secret to the public that some legislators of the National Assembly had been compromised by some powerful and wealthy sugar cartel operatives who wanted some sections of the Bill doctored or expunged because they would tamper with multi-billion shillings business interests.
The emerging reports are that the strengthened Sugar Bill could be headed to the President’s office for signing into law any time from now. However, that will just be the beginning since there are many other challenges that have be surmounted before the sugarcane farmers, millers and stakeholders reap benefits from a critical industry.
The Bill, which was crafted and tabled by the Navaholo legislator Emmanuel Wangwe, sought to seal, if possible, all loopholes which had brought the country’s sugar industry to such an inglorious standstill.
The introduction of the Sugar Bill, 2022 marks a pivotal moment for Kenya's sugar industry, a sector that has long been mired in inefficiencies, mismanagement, corruption, outright looting and economic turmoil.
This comprehensive legislation promises to address systemic challenges and sets the stage for a more prosperous and sustainable future. While the Bill has generated diverse opinions, its potential benefits cannot be overstated or even understated.
One of the most critical things in the Bill that are critical to the ordinary farmers include the establishment of the Sugarcane Development Fund, which was previously known as the Sugar Development Levy. It will also provide loans to farmers to develop their sugarcane after they deliver their crop to millers for processing.
The other benefit is the re-establishment of the zoning laws that provides a specific number of millers with a designated zone where each miller can comfortably enter sugarcane development programmes.
There is also the critical question of the sugar directorate under Agriculture and Food Authority. The directorate was formed after the disbandment of the Kenya Sugar Board after a detailed petition by Western Development Initiative Association to the National Assembly where MPs found it to be behind the mess in the sector.
The cornerstone of the Sugar Bill, 2022 is the re-establishment of the Kenya Sugar Board. This move is a direct response to the industry's decline since the 2013 repeal of the Sugar Act and the subsequent transfer of oversight to AFA. Critics argue that the AFA's broad mandate diluted the focus necessary for effective sugar sector governance, leading to issues such as non-payment of farmers, skyrocketing production costs, and gross mismanagement of sugar companies. Reinstating a dedicated board should provide the focused oversight and strategic direction needed to tackle these problems head-on.
It is also key to protecting local farmers from unfair competition since another significant aspect of the Bill is its stringent regulation of sugar imports. For years, unchecked imports have flooded the Kenyan market, driving down prices and hurting local farmers.
By requiring importers to demonstrate the unavailability of the sugar locally and to submit samples for testing before importation, the Bill aims to safeguard local producers from substandard foreign competition. This protection is crucial for ensuring that local farmers receive fair prices for their produce and can compete on an even playing field.
As a matter of fact, just a week ago, the Principal Secretary for Interior Raymond Omollo issued orders banning all sugar importations which he said were hurting the sector. He went on to warn that those found engaging in illegal importations would face full force of the law.
There is also the critical question of research and development in the Bill that will see the reintroduction of the Sugar Development Levy and Sugar Development Fund. These funds will finance critical research and development initiatives, including the adoption of faster-maturing sugarcane varieties. In an era where agricultural innovation is essential for competitiveness, investing in R&D will help Kenyan sugar farmers increase yields, reduce production costs and enhance the overall quality of their produce.
Streamlining licensing and operations has not been left out because the Bill's provisions for licensing sugar mills and jaggery mills underscore its commitment to the rigour of regulation. By mandating that all mills operate under a current licence issued by the Kenya Sugar Board, the legislation seeks to eliminate illegal operations and ensure compliance with industry standards. This measure is expected to foster a more orderly and transparent market environment, benefiting both producers and consumers.
However, the most critical issue is the immediate establishment of the regulations once the Bill has been signed into law and its immediate execution to ensure that everything goes strictly according to the Bill and not subject to wanton compromise but catering to the suffering of cane farmers’ interests.
Journalist and media consultant, [email protected]