Western leaders laud Ruto for Sh117bn waiver on sugar millers

The move will see five sugar millers revived amid suspension.

In Summary
  • "Our leaders should ensure there's a change in the model of management so that we don't go back to the same problems we had," Wetangula said.
  • "We appreciate your stand in the quest to revive the sugar industry by waiving the debts, you've made our work easier," Barasa said. 
Kakamega Governor Fernandes Barasa during the interdenominational prayer service held in Bungoma County.
Kakamega Governor Fernandes Barasa during the interdenominational prayer service held in Bungoma County.
Image: HANDOUT

Western Kenya leaders have welcomed the proposal made by President William Ruto to write off Sh117 billion debts accrued by sugar factories.

The move will see five sugar millers revived amid suspension. 

The sugar factories are Nzoia, South Nyanza (Sony), Chemelil, Mumias, Muhoroni and Miwani, the latter two are under receivership.

Kakamega Governor Fernandes Barasa lauded the government for the move, saying the upcoming sugar conference will seek to solve 90 percent of the problems facing the sector.

"We appreciate your stand in the quest to revive the sugar industry by waiving the debts, you've made our work easier," he said. 

National Assembly Speaker Moses Wetangula challenged sitting Governors in the Lake Region Economic Bloc to fast-track the revival of the ailing sugar sector.

"Our leaders should ensure there's a change in the model of management so that we don't go back to the same problems we had," Wetangula said.

COTU Secretary General Francis Atwoli challenged Governors in western and Nyanza to harmonise the sugarcane farming industry.

"We need to emulate what other cane-growing countries are doing. If our Governors can join hands and have one sugar factory then that will reduce our problems," Atwoli said.

The Head of State urged lawmakers to approve the waiver saying it's high time the factories get back on track.

"The initial plan to privatise state-owned millers will not happen, we will not let our companies continue sinking into more debts. It's now up to our MPs to approve the waiver on the debts owed by sugar companies," Ruto said.

The exchequer wrote to Parliament asking for a write-off of loans owed to the government and the Kenya Sugar Board amounting to Sh65.8 billion, and tax penalties amounting to Sh50.14 billion.

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