During the last few weeks, the National Assembly’s Committee on Agriculture and Livestock has held public participation on the Sugar Bill, 2022 under the chairmanship of Hon.Dr. John Mutunga.

Mr. David Okoth, General Manager and other representatives of Sukari Industries and cane farmers engaged with Committee Members in Kanyikela area of Ndhiwa Constituency, Homabay County.

The General Manager, Mr. David Okoth submitted that Sukari Industries sought the reinstatement of the Sugar Board whose composition should be inclusive of both private and public millers.

While making submissions on the state of the sugar subsector in Kenya, the management of Sukari Industries also sought the reinstatement of the Sugar Development Levy should be channelled towards cane research, financing to millers and farmers and maintenance of road networks.

The management of Sukari Industries further welcomed the creation of the Sugar tribunal. Mr. Okoth said "we have so many cases in court that concerning the miller and farmer and the Sugar tribunal would be effective in adjudicating such matters."

Regarding the County Cess payments the millers are  paying 1% of total gross payable to farmers to counties but admit the money is not being ring-fenced to maintain infrastructure.

Lawmakers' also met with Hon. Jared Opiyo, Chair Board of Managament and Mr. Stephen Ligawa, MD South Nyanza Sugar Ltd (SONY) in Migori County.

One of the proposals presented was to allow public sugar mills to import sugar during the period under which millers are undergoing maintenance to address the current shortage of cane in the Western sugar belt.

Sony Sugar representatives proposed the development of Outgrowers Unions to bring farmers together in a structured manner and give them a voice.

During the meeting, Legislators raised red flags over the miller's debt. The management informed the Committee that the Company had acurred losses of KShs 4B between 2012 and 2020.

The MD requested the restructuring of their bank loans and interests. He also admitted to owing employees salaries for part of 2019 and 2020 due to financial constraints.

"The cost of litigation, has weighed us down. We currently have 4000 cases in court, and the sugar arbitration tribunal would facilitate dispute resolution because it is sector-specific," admitted  Mr. Stephen Ligawa.

Both Sukari Industries and Sony agreed to decentralizing the Kenya Sugar Board and Sugar Tribunal and devolving branches to ensure access to means of arbitration to farmers.

Regarding delineation of catchment areas, some sugar millers opposing the delineation of catchment areas because they do not have any cane development and do not contract farmers. However, millers that have invested heavily in cane development would want zoning to decrease cane poaching.

Members of the Committee on Agriculture and Livestock also met with Cane farmers in Migori and Homabay Counties.

Cane farmers raised various concerns, including the lack of transparency on where the cess charged on harvested cane, composition of the Sugar Board, the decentralisation of the Sugar Tribunal and the inclusion of branches, and the representation of farmers in the Sugar Research Institute. 

Representatives from the Farmers Associations questioned the classification of as a commodity and not a food, which exempts it from taxes.

Furthermore, cane farmers expressed their desire for the Sugar Development Levy to be reinstated to provide access to financing and grants for cane development and machinery to repair roads. They also suggested that the distribution of the Sugar Levy should benefit both the miller and the farmer, and that a different body should manage the funds instead of the regulator, Kenya Sugar Board.

Poor infrastructure, especially the poor road network and lack of bridges, was a major concern for farmers, as they were unable to access their fields during the rainy season.

While addressing the plight of cane farmers, Hon. Ferdinand Wanyonyi added, "We need to find a way to incentivize millers to invest in cane development and farmers, so they can grow more cane and increase their yields."

"We are aware that high cost of farm inputs such as fertilizers, seed cane, and land preparation, as well as the lack of financing options and proper agriculture extension services have caused", said Hon. Dr. John Mutunga.

Cane farmers called for funding of the Kenya Sugar Research Institute for development of better cane varieties that yield more cane and are resistant to drought and diseases.

Lawmakers' pledged to look into regulations that will protect the Sugar industry. Hon. Pamela Njoki Njeru stated, "We are looking into ways of increasing the representation of farmers in the Sugar Board to ensure that their voices are heard and their concerns addressed."