President William Ruto has announced that the government has approved the first tranche of Sh600 million for seed cane development.
Ruto said the funds are part of the Sh2 billion pledge towards sugarcane development in the Western region through the state-owned mills.
“The National Treasury shall shortly release these funds,” he said.
Speaking during the 61st Madaraka day celebrations held at the Masinde Muliro stadium in Bungoma, the head of state also used the opportunity to detail the gains his administration has so far realised in the sub sector.
According to Ruto, the government has already written off Sh110 billion worth of sugar factories’ debts which had accumulated for over 40 years.
The decision to write off the debts was agreed in a cabinet meeting in October last year following the Parliament's approval.
In a memorandum submitted to Parliament on August 22, 2023, Treasury Cabinet Secretary Njuguna Ndung'u told lawmakers the waiver is part of the action plan to revive Chemelil, Muhoroni, Miwani, Nzoia and Sony sugar companies.
The debt was in form of bank loans, tax arrears and penalties, farmers' and employees' dues.
Additionally, Ruto pointed out that a new leasing model that will guarantee prompt payment for cane deliveries by farmers has since been introduced.
“This will ensure timely wages for factory workers and bonuses to sugar cane farmers every end of the year,” he stated.
“I call upon relevant agencies to accelerate the review process and to incorporate proceeds from by-products.”
In his speech, Ruto observed that sugar industry is a highly strategic sub-sector, whose value chains have been the mainstay of the local economies of our sugar belt, and a generator of much-needed jobs.
“For this reason, we are firmly committed to ensuring that the sugar industry returns maximum value to all actors in its value chains, beginning with the initial and foundational entrepreneur,” he said.
