KENYA – Kenyan sugarcane farmers are set to begin receiving bonuses for their produce starting this year as part of the reforms promised by the government.
President William Ruto announced the bonus plan, emphasizing that the government has streamlined operations at Mumias Sugar Company to ensure farmers benefit from their hard work.
Speaking on the new initiative, President Ruto stated, “We want to provide leadership that will pay sugarcane farmers on time, pay the right prices, pay the workers, and be able to pay bonuses to farmers. It is time we change the way we do business to benefit farmers instead of importers.”
However, the National Federation of Sugarcane Farmers (NFSF) has expressed concerns about the implementation of the bonus scheme.
Simon Wesechere, Deputy Secretary General of the federation, urged the government to clarify the criteria and legal framework that will be used to administer the bonuses, noting that such provisions are not currently included in the existing Sugar Act or regulations.
Wesechere also called on the government to expedite the amendment of the long-pending Sugar Bill 2019 to include a bonus clause, emphasizing that without legal backing, the President’s announcement may lack substance.
“The President should push for an amendment in the Bill that has overstayed in the corridors of Parliament since 2018 to introduce the bonus clause. Until then, all he is telling us is nothing but hot air,” Wesechere remarked.
The President’s announcement comes at a time when sugarcane farmers are voicing their concerns over a recent drop in cane prices.
The Agriculture and Food Authority (AFA) reported a surge in domestic sugar production during the first half of 2024, reaching 485,802 tonnes by the end of August.
This increase in production has led to a significant drop in sugar prices, with the cost of a 50kg bag of sugar falling from KES 9,500 (US$73.65) in December 2023 to KES 5,128 (US$39.76).
Cane prices have similarly decreased from KES 6,050 (US$46.91) per tonne to KES 4,950 (US$38.38).
The Kenya Sugarcane Growers Association attributes this decline to an influx of imported sugar and has called for the suspension of duty-free imports to stabilize local sugar prices and protect domestic farmers.
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