@DailyNation

Kenya risks missing Comesa deadline for sugar sector reforms

4 months ago, 27 Maý 15:12

By: Gerald Andae

Kenya is likely to miss the Common Market for Eastern and Southern Africa (Comesa) deadline for liberalising the sugar industry due to wrangles between governors and the Privatisation Commission over sale of mills.

The Council of Governors (CoG) has rejected the sale in its entirety, saying it will not solve problems facing farmers, instead demanding the assets revert to the counties.

Previously, the governors were only opposed to the sale formula saying it was not in the interest of the growers.

Chair of the agriculture committee at the CoG Okoth Obado says counties are able to run the mills efficiently on behalf of farmers.

ALSO READ: First quarter sugar imports fall 54pc on excess supply

“We are not allowing the sale of these factories, we want them to be given to counties, which can operate them efficiently,” he said. In March, the Commission said it was targeting to complete the sale to private millers by August before the safeguards come to an end.

Kenya was given up to February next year to privatise State-owned millers, among other requirements, before the safeguards that have been in place for over one-and-a-half decade are lifted. This implies that Kenya’s sugar will have to compete with cheaper commodity from Comesa states.

“Privatisation is not the solution to problems facing sugar millers; Mumias was privatised many years ago but look at the problems that it is facing,” said the Migori governor.

The government plans to sell a 51 per cent stake in the companies to strategic investors and reserve another 24 per cent for farmers and employees.

It will then sell the remaining 25 per cent in the milling companies through an initial public offering once the factories are profitable.

Farmers and political leaders in Sony, Nzoia and Chemelil have also opposed the sale of factories. This implies that the commission will in the meantime only be able to sell highly indebted factories that are not active in production such as Miwani (owes creditors Sh28 billion) and Muhoroni (Sh27 billion), which are in receivership.

ALSO READ: Heads of agriculture directorates moved in ministry shake-up


Read More


Category: business news topnews

Suggested

2 hours ago, 14:31
@AfricaNews - By: Michael Ike Dibie
Libya sue JPMorgan over $6M bribe allegation | Africanews

Libyan Investment Authority (LIA) has sued JPMorgan Chase & Co. in London. ...

Category: africa africa_business business news topnews
2 hours ago, 14:45
@BusinessDaily - By: The New York Time ...
For elderly women with breast cancer, surgery may not be the

Schonberg said that patients’ decisions — about screenings and treatments — have proved stubbornly resistant to change. ...

Category: business markets news corporate economy opinion
3 hours ago, 13:30
@StandardMedia - By: Valentine Kondo
President Uhuru Kenyatta proposes eight percent tax increment on mobile money transactions

The fee charged will be more than excisable value owing to the fact that there have been a growing number of consumers using the mobile money transfer ...

Category: business news
4 hours ago, 12:30
@StandardMedia - By: Valentine Kondo
President proposes eight percent tax increment on mobile money transactions

The fee charged will be more than excisable value owing to the fact that there have been a growing number of consumers using the mobile money transfer ...

Category: business news
1 hour ago
@BusinessDaily - By: Mohammed Momoh
Alarm as 7,000 billionaires evade taxation in Nigeria

Tax experts are demanding stricter punishment for defaulters, claiming they were largely to blame for Nigeria’s external debt of more than $33 billion ...

Category: business markets news opinion
1 hours ago, 15:23
@BusinessDaily - By: Bd Reporter
High Court: Law that allows Treasury to effect taxes without MPs

The law allows Treasury to collect taxes pending approval of the Finance Bill 2018. ...

Category: business opinion news

@DailyNation

Kenya risks missing Comesa deadline for sugar sector reforms

4 months ago, 27 Maý 15:12

By: Gerald Andae

Kenya is likely to miss the Common Market for Eastern and Southern Africa (Comesa) deadline for liberalising the sugar industry due to wrangles between governors and the Privatisation Commission over sale of mills.

The Council of Governors (CoG) has rejected the sale in its entirety, saying it will not solve problems facing farmers, instead demanding the assets revert to the counties.

Previously, the governors were only opposed to the sale formula saying it was not in the interest of the growers.

Chair of the agriculture committee at the CoG Okoth Obado says counties are able to run the mills efficiently on behalf of farmers.

ALSO READ: First quarter sugar imports fall 54pc on excess supply

“We are not allowing the sale of these factories, we want them to be given to counties, which can operate them efficiently,” he said. In March, the Commission said it was targeting to complete the sale to private millers by August before the safeguards come to an end.

Kenya was given up to February next year to privatise State-owned millers, among other requirements, before the safeguards that have been in place for over one-and-a-half decade are lifted. This implies that Kenya’s sugar will have to compete with cheaper commodity from Comesa states.

“Privatisation is not the solution to problems facing sugar millers; Mumias was privatised many years ago but look at the problems that it is facing,” said the Migori governor.

The government plans to sell a 51 per cent stake in the companies to strategic investors and reserve another 24 per cent for farmers and employees.

It will then sell the remaining 25 per cent in the milling companies through an initial public offering once the factories are profitable.

Farmers and political leaders in Sony, Nzoia and Chemelil have also opposed the sale of factories. This implies that the commission will in the meantime only be able to sell highly indebted factories that are not active in production such as Miwani (owes creditors Sh28 billion) and Muhoroni (Sh27 billion), which are in receivership.

ALSO READ: Heads of agriculture directorates moved in ministry shake-up


Read More

Category: business news topnews

Suggested

2 hours ago, 14:31
@AfricaNews - By: Michael Ike Dibie
Libya sue JPMorgan over $6M bribe allegation | Africanews

Libyan Investment Authority (LIA) has sued JPMorgan Chase & Co. in London. ...

Category: africa africa_business business news topnews
2 hours ago, 14:45
@BusinessDaily - By: The New York Time ...
For elderly women with breast cancer, surgery may not be the

Schonberg said that patients’ decisions — about screenings and treatments — have proved stubbornly resistant to change. ...

Category: business markets news corporate economy opinion
3 hours ago, 13:30
@StandardMedia - By: Valentine Kondo
President Uhuru Kenyatta proposes eight percent tax increment on mobile money transactions

The fee charged will be more than excisable value owing to the fact that there have been a growing number of consumers using the mobile money transfer ...

Category: business news
4 hours ago, 12:30
@StandardMedia - By: Valentine Kondo
President proposes eight percent tax increment on mobile money transactions

The fee charged will be more than excisable value owing to the fact that there have been a growing number of consumers using the mobile money transfer ...

Category: business news
1 hour ago
@BusinessDaily - By: Mohammed Momoh
Alarm as 7,000 billionaires evade taxation in Nigeria

Tax experts are demanding stricter punishment for defaulters, claiming they were largely to blame for Nigeria’s external debt of more than $33 billion ...

Category: business markets news opinion
1 hours ago, 15:23
@BusinessDaily - By: Bd Reporter
High Court: Law that allows Treasury to effect taxes without MPs

The law allows Treasury to collect taxes pending approval of the Finance Bill 2018. ...

Category: business opinion news
Our App