Stakeholders in the sugar sub-sector have lauded the government’s move to approve a Ksh117 billion bailout for South Nyanza Sugar (SONY), Nzoia Sugar, Muhoroni, Chemelil, Miwani, and Mumias Sugar companies.
Through the Kenya Sugar Growers Association (KESGA), the stakeholders noted that the move would enable millers to clear outstanding debts and become organized as they prepare for the anticipated leasing of firms.
The association’s Chairperson Richard Ogando said many millers have been suffering due to huge debts and old machinery.
Kenya Union of Sugar Plantation of Workers Secretary General Francis Wangara said the move is long overdue and that millers can now purchase new machinery and service the existing ones.
Speaking during a cabinet sitting at Kisumu State Lodge, President William Samoei Ruto directed the National Treasury to work on the necessary paperwork to facilitate the process.
He said the government is determined to revive the sector, adding that the money will be released to the factories to ensure they operate optimally to save farmers from agony.
“Through the Bottom-Up Economic Transformation Agenda (BETA), the government is on course to revive agriculture in Nyanza region,” he revealed, stating further that some of the measures employed include the expansion of the Lower Nzoia Irrigation Project at a cost of Ksh5.9 billion.
The investment will see the expansion of the scheme by an additional 20,000 acres whereas the Lower Kuja Irrigation Project will be expanded by 14, 000 acres.
“The two projects target to scale up rice production to bridge the current shortage,” he explained, further promising that the government will fast track the construction of Gogo Dam in Migori County to stabilize power supply in the region.
By Fredrick Odiero
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