KENYA – Cane farmers and leaders from Kenya’s Nandi County have voiced their opposition to the zoning of sugar catchment areas as proposed in the Sugar Bill 2022.
The proposed zoning rules require growers to sell their cane to millers operating within specific regions, limiting their ability to seek better prices elsewhere.
During a meeting with farmers and stakeholders, Nandi County Women Representative Mrs. Cynthia Muge expressed the farmers’ concerns stating; “We want our farmers to be at liberty to sell their cane to the best miller with good pay and in good time in order to reap maximum benefits from their investment.”
The proposed zoning bill includes plans to establish five zones across the country, compelling farmers to sell their produce to millers within these designated areas.
However, this has raised concerns among farmers, particularly in regions like Nandi County, where there are limited milling options.
For example, the proposed merger of Uasin Gishu, Nandi, and Kericho Counties into a single zone would require farmers to transport their sugarcane over long distances to reach designated mills.
In addition to zoning, the Sugar Bill 2022 seeks to establish a dedicated sugar body to manage the sugar sector independently from the Agriculture and Food Authority (AFA).
The bill also proposes the creation of a Sugar Arbitration Tribunal to resolve disputes and the establishment of the Kenya Sugar Research Training Institute to regulate research and prevent sugarcane poaching.
Mrs. Muge criticized the bill, stating that it oppresses cane farmers in the region and urged the Senate Committee on Agriculture to either pass the bill with amendments or reject it entirely.
She called for a free market and competition to improve prices and benefit farmers. She also urged the committee to consider recommendations from a report prepared by former Kakamega Governor Wycliffe Oparanya.
Farmers echoed Mrs. Muge’s sentiments, expressing their desire for freedom in selling their cane and highlighting the potential financial burden of transporting sugarcane over long distances.
They emphasized the importance of preserving a free-market system to ensure fair prices and opportunities for farmers across the country.
The news come when Butali Sugar has called on its cane suppliers to transition to the electronic Tax Invoice Management System (eTIMS) as the company aligns with the Kenyan Revenue Authority’s (KRA) online tax invoicing requirements.
Effective April 1, 2024, each farmer supplying cane to the factory is mandated to issue an e-TIMS invoice for every delivery, without which the miller will be unable to process payments for the delivered cane.
Concurrently, the ministry of agriculture is advocating for an extension of the duty-free sugar import waiver. The current waiver, set to expire on April 6, prompted the proposal for a two-month extension to ensure the country’s sugar requirements are adequately met.
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