President William Ruto, on Thursday, February 1, changed his tune regarding the leasing and privatisation of the Nzoia Sugar Company.
Speaking during the Nzoia Sugar Company Farmers’ meeting in Bungoma County, Ruto pledged to overhaul the management of the parastatal rather than selling it to private investors.
He added that new managers will turn Nzoia from a loss-generating to a profit-making company by enhancing its operations and protecting against the misuse of funds.
“Under the fresh management, Nzoia Sugar - whose debts have now been fully written off - will pay farmers and workers’ dues on time,” he stated.
“The County Government of Bungoma will also enjoy an annual dividend of not less than Ksh300 million," Ruto added.
During the meeting, the head of state also issued cheques to farmers and flagged off the National Fertiliser Subsidy Programme, to increase farm output in the area.
On January 16, the Kenya Kwanza government announced a tender inviting individuals interested in acquiring several sugar companies to place their bids.
The State Department for Agriculture demanded a Ksh10 million deposit from interested investors to secure their positions in the bidding process.
Bungoma leaders led by former Water Cabinet Secretary Eugene Wamalwa, however, vowed to oppose the privatisation and leasing of the sugar company.
"We are opposing all privatisation plans without Parliamentary oversight. As Azimio leaders, we went to court and got an order barring all privatisation plans," Wamalwa stated.
Nzoia and other sugar companies, Chemelil, South Nyanza, Nzoia, Muhoroni, Miwani and Mumias Sugar have been generating losses over the years, despite government funding.
Ruto, during a tour of Western Kenya last year, blamed sugar cartels for the losses.
