Members of Parliament from Muhoroni, Awendo and Kanduyi support the writing off debt and tax penalties amounting to Kshs 128.07 Billion owed by five state owned sugar companies.

The Joint Committee of Agriculture and Livestock and Finance and Planning received views from Hon. John Makali (Kanduyi), Hon. James K’Oyoo (Muhoroni) and Hon. Walter Owino (Awendo) and Members of the County Assemblies of Kisumu and Migori regarding the revival and commercialization of State-Owned Sugar Companies.

Under the leadership of Hon. Dr. John Mutunga and Hon. Kuria Kimani, the Committees are set to delve into a multifaceted challenges that have plagued the sugar sector.

According to the Treasury action plan to revive and revitalise the sugar sector, Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (in receivership), Muhoroni Sugar Company (in receivership), and South Nyanza Sugar Company (SONY) owe substantial amounts of money to farmers, suppliers for goods and services rendered, employees salary arrears, unserviced loans and interest to financiers,taxes and tax penalties and unpaid statutory deductions such as NHIF and PAYE that have left these companies with huge debt burden without corresponding assets.

Members of the Joint Committee acknowledged land ownership as a point of contention that needs to be resolved. Hon. Kibagendi Osoro emphasized the importance of resolving issues surrounding community land and divesture of land , stating, "Land is a very emotive issue. This was community land that was donated to the government for some of these factories."

Proposals to lease community-owned land for sugar cane farming gained traction, with Hon. Justice Kemei and Hon. Gabriel Kag'ombe arguing that this approach could help boost yields and reduce the burden on smallholder farmers.

Kisumu and Migori County, MCAs also voiced their support for the leasing of land, rather than the selling of factory land. The MCAs oppose the merger of factories as proposed by National Treasury in their memorandum, citing concerns that it will create monopolies and stifle competition. Instead, they suggest developing a formula for leasing land from farmers with a guaranteed percentage for farmers.

On the other hand, Hon. John Makali (Kanduyi), Hon. James K’Oyoo (Muhoroni) and Hon. Walter Owino (Awendo) have called for an end to sugar importation and the creation of protections against imports.

Leaders from sugar growing areas also stressed the need to pay arrears owed to cane farmers and employees of state-owned sugar companies highlighting the dire situation in Nzoia Sugar Company, where farmers have not been paid for the last 10 months and workers for 11 months. Nzoia has the largest nucleus estate which is totally underutilized due to serious cases of mismanagement.

Members of the Joint Committee will meet with farmers representatives, the management of the five public-owned sugar mills, including Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (in receivership), Muhoroni Sugar Company (in receivership), and South Nyanza Sugar Company (SONY), the Competition Authority of Kenya and the Kenya Revenue Authority in the coming days.