KENYA – The volume of sugarcane delivered to factories for milling in Kenya experienced a substantial surge in December, doubling compared to the previous month.
Data from the Kenya National Bureau of Statistics revealed that growers delivered 610,020 tonnes of cane in December, a notable 105.9 percent increase from 296,170 tonnes in November.
This surge coincided with the end of a four-month ban on sugar production aimed at preventing the harvest of immature raw materials.
The Agriculture and Food Authority (AFA) imposed the ban in July, allowing only those factories that proved they had collected enough mature cane to crush during the ban period.
The ban was instituted due to factories, both public and private, running out of mature cane and resorting to crushing immature cane. Additionally, poaching wars between factories, enticing farmers with better offers, further exacerbated the situation.
The ban was in effect from July to November, with factories resuming crushing on December 1. During the ban period, cane deliveries saw a significant drop from 436,690 tonnes in June to 182,970 tonnes in September, worsening the existing sugar deficit.
To stabilize prices and meet demand, the government extended duty-free importation of sugar, resulting in a temporary easing of prices from US$1.39 per kilogram in October to US$1.36 in December.
As farmers increase their cane supply to factories, the government has initiated plans to revive the struggling sugar industry.
In January, the government began the process of leasing five public sugar factories, including Nzoia Sugar Company, South Nyanza Sugar Company, Chemelil Sugar Company, Muhoroni Sugar Company, and Miwani Sugar Company, to private companies for a 20-year term in a fresh revival plan.
Jude Chesire, Director of the Sugar Directorate, mentioned that the government would extend the timelines for investors to express interest in the planned leasing of the sugar mills, addressing concerns raised over the limited duration.
Representatives of cane farmers had protested at the limited duration with Kenya National Sugarcane Growers’ Association (KESGA) officials led by Secretary General Richard Ogendo terming the proposed timelines as too short.
“The Government has given the new investors up to February,15 to submit expression of Interests (EOI), to run the firms. We feel this time is short,’’ he said.
Successful bidders will control factories, office buildings, machinery, equipment, nucleus farms, staff and guest houses, schools, sports stadiums and service contractor yards owned by the millers.
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