Deputy President Rigathi Gachagua on Monday, June 5, proposed a leasing model for struggling state-owned sugar millers that were riddled with debt following pressure from farmers.
Speaking in a press briefing at his official Karen residence, the DP noted that the farmers voiced their opinions through public participation that they were not keen on privatisation.
While issuing the way forward, Gachagua added that the leasing model would be drafted after consultations with Attorney General Justin Muturi on how the model would benefit the counties.
"The Ministry of Agriculture has conceded that through public participation, the farmers in the sugar belt are not very keen on privatisation as they prefer a leasing model."
"We have agreed that it will be worked out with the opinions being given by the Attorney General on how those sugar factories and the nuclear farms can be leased for the benefit of the counties," he stated.
He added that the Ministry of Agriculture would await the outcome of three cases that were pending in courts over the privatisation issue.
Further, the DP issued a two-week ultimatum to all governors to form committees to interrogate pending bills. He added that the government was unable to settle the amount at once.
“Some of the pending bills have no supporting documents and so the governors cannot honour them.
“Should they decide to clear them, they will be held accountable for paying bills that were not procured in a regular manner," he noted.
Privatisation
During a tour in Kakamega County on April 30, 2023, President William Ruto asserted that the government would inject funds into the debt-ridden companies to revive them to profitability.
He listed examples of Mumias Sugar Company, Nzoia, Muhoroni, Chemelil and Miwani sugar factories among others which had debt of over Ksh60 billion.
"I have directed that the sugar factories go back to the locals. We want to change the narrative and ensure the millers start making profits and give our people jobs," he stated.
