The enactment of the Sugar Bill, 2022, is crucial for the revival of Kenya’s struggling sugar industry, a lifeline for millions of farmers and stakeholders. For years, the sugar sector has been plagued by mismanagement, corruption, and inefficiencies, with billions of shillings in investments hanging in the balance. Now, sugarcane farmers eagerly await the bill’s passage as it moves closer to President William Ruto’s desk for signing into law.
The mediation committee, tasked with clearing the bill for presidential assent, has emphasized its priority status. This follows concerns raised by the Senate, which intervened after members of the National Assembly allegedly tampered with critical sections of the bill. The Senate’s move was essential to ensure that the bill, once enacted, would address the deep-rooted issues within the sector.
At the heart of the bill is the re-establishment of the Kenya Sugar Board, a move designed to reverse the industry’s decline since the repeal of the Sugar Act in 2013. The transfer of oversight to the Agriculture and Food Authority (AFA) diluted the focus required for effective governance of the sugar sector, leading to non-payment of farmers, high production costs, and the mismanagement of sugar companies. A dedicated board is expected to provide the focused oversight and strategic direction needed to bring the industry back on track.
The bill also seeks to protect local farmers from unfair competition by regulating sugar imports. For years, unchecked imports have flooded the market, driving down prices and hurting local producers. The bill introduces stricter rules, requiring importers to demonstrate the unavailability of sugar locally and submit samples for testing before importation. These measures will shield local farmers from substandard competition and ensure they receive fair prices for their produce.
Another significant provision of the bill is the creation of the Sugarcane Development Fund, previously known as the Sugar Development Levy. This fund will provide loans to farmers to develop their crops after delivering them to millers for processing. It is a much-needed support system for farmers who have long been neglected by the government and millers alike.
Additionally, the bill reintroduces zoning laws, allowing each miller to have a designated area where they can establish sugarcane development programs. This will encourage long-term planning and investment in the sector, benefiting both millers and farmers.
The Sugar Bill also addresses the need for research and development (R&D) in the sector. The reintroduction of the Sugar Development Levy and Sugar Development Fund will finance crucial R&D initiatives, such as the development of faster-maturing sugarcane varieties. In today’s competitive agricultural landscape, innovation is key to improving yields, reducing production costs, and enhancing the quality of produce.
Moreover, the bill’s licensing requirements for sugar and jaggery mills are designed to eliminate illegal operations and ensure compliance with industry standards. All mills will be required to operate under a current license issued by the Kenya Sugar Board, fostering a more transparent and orderly market environment.
As Kenya grapples with the challenges facing the sugar sector, the Sugar Bill represents a critical step toward restoring the industry’s stability and growth. However, the real test will come after the bill’s enactment, when regulations must be established and implemented without delay. Immediate action is necessary to ensure that the bill’s provisions are strictly adhered to and not subject to compromise by powerful interests in the sector.
With the Sugar Bill poised for signing into law, it offers a glimmer of hope for Kenya’s sugarcane farmers and the entire industry. The government’s swift action to implement the bill will be essential in safeguarding the livelihoods of millions and setting the stage for a more prosperous future for Kenya’s sugar industry.
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