GOODIES

Ruto: Government to write off state-run sugar millers' debts

The President said the idea of privatising state-owned firms has been dropped.

In Summary
  • Ruto said the privatisation option for the state-owned millers has been dropped while debts.
  • The county boss also told the legislators to stand for the truth ahead of the third reading for the Finance Bill slated for next week.
President William Ruto speaking at State House on June 14, 2023
President William Ruto speaking at State House on June 14, 2023
Image: PCS

 

President Ruto has given an undertaking that his administration will revive the troubled sugar industry in the Western region.

Ruto said the privatisation option for the state-owned millers has been dropped while debts will be written off among other long-term plans for the industry.

“I want you to know that it will not be privatised, land will remain property to Kenyans but we will plan to ensure it benefits Kenyans. We have spent more than Sh4 billion that goes into the drain but this time we want to do it differently,” Ruto said.

Ruto was responding to concerns from leaders from the region led by Governor Fernandes Barasa who requested him to come to the aid of the industry.

“Our five sugar companies have debts of more than Sh60 billion which needs to be written off. We will take it to MPs to do a complete write off because previously they did half of it,” Ruto said.

Ruto was speaking Sunday during a thanksgiving service at ACK Milimani Church in Kakamega.

Barasa, who has been spearheading calls for sustainable solutions for the sector especially the ailing Mumias Sugar Company, also reiterated the need to hold a sugar conference to address issues facing farmers in the sugar industry.

“When you go to Mumias, we lose former employees every week. They are living deplorable life because they are owed more than Sh800 million. I want you to lead that conversation so we get a long lasting solution,” Barasa said

He further called for amendments to the controversial Finance Bill,2023 saying taxes must be used prudently to cushion Kenyans from the high cost of living.

“I want to confirm today that on behalf of the 47 governors ,we support your initiative to collect taxes. We cannot have development, and we cannot get services to the people without taxes,” he said.

The county chief told legislators to stand for the truth during the third reading next week.

 “As the chair of the COG's Finance Committee, my idea was to motivate Kenyans to give their views through public participation. I appreciate the committee for incorporating some of our concerns,” he said.

Barasa spoke as the National Treasury is expected to release funding to counties amounting to Sh31.5 billion for the month of May 

This, as he revealed that the exchequer released Sh33.3 billion for April and is expected to release Sh31.45 billion for May.

His Nairobi counterpart Johnson Sakaja as well as Prime Cabinet Secretary Musalia Mudavadi both stressed the need to pay taxes to enable both levels of government meet operational obligations and fund development

On Tuesday MPs are set to debate the Finance Bill, 2023 during the third reading.

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