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{
    "id": 1284800,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1284800/?format=api",
    "text_counter": 149,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "The Leader of the Majority Party, Hon. Kimani Ichung’wah, tabled the Memorandum by the National Treasury and Economic Planning on Action Plans to Revive and Commercialise State-owned Sugar Companies on 22nd August, 2023. The Speaker of the National Assembly directed that the Memorandum be referred to the Departmental Committees on Finance and National Planning, and Agriculture and Livestock for consideration and reporting back to the House within two weeks. The National Assembly is requested to consider and approve as per the Treasury Memo: 1. Write-off of loans owed to the public sugar companies to the Government of Kenya and Kenya Sugar Board or Commodities Fund amounting to Kshs65,778,448,646 as of 30th June, 2023 and any other accrued interest at the date of approval. 2. Write off of taxes, penalties, and interest as approved by Parliament amounting to Kshs50,144,801,608 as of 30th June 2023 and any additional interest and penalties that would have accrued since then. 3. The vacation of the privatisation model approved by Parliament in 2015. 4. The leasing model of five public sugar mills, that is Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company that is in receivership, Muhoroni Sugar Company that is in receivership, and South Nyanza Sugar Company. The sugar industry plays a significant role in supporting the economy and livelihoods of over eight million Kenyans. It is sad to know that Kenya has been a net sugar importer since the mid-1980s, and the gap between production and demand has been widening. Kenya’s annual consumption in 2002 stood at 1.1 billion metric tonnes against a production of only 790 million metric tonnes, leading to an importation of 320 million metric tonnes worth Kshs28 billion. Annual production importers are shown in the annex of the Report that we tabled in the morning. The objective of the Memorandum is to create a competitive sugar sector with the ability to withstand the withdrawal of the Common Market for Eastern and Southern Africa (COMESA) safeguards with a focus on the modernisation of sugar milling plans, which will improve production and operational efficiency and enhance cane development in both nuclear estates and smallholder farms in addition to improving cane sucrose content to between 13 per cent and 14 per cent. The Memorandum proposes a leasing model that will bring on board private capital expertise and modernisation of sugar mills for efficient commercial operations, leasing the nucleus estate and factory land to private investors. When considering the Memorandum, the joint Committee held meetings with stakeholders, most of whom will be affected by the proposals in the Memorandum. The stakeholders include Members of County Assemblies (MCAs), Members of Parliament, Sugarcane farmers, outgrower institutions, management of state-owned sugar companies, the National Treasury, and the Kenya Sugar Authority. The meetings were held in Kisumu County from Tuesday, 5th September to 7th September 2023. Hon. Speaker, I would like to extend my sincere gratitude to you because you convened a very successful sugar conference that weekend, from which we heavily borrowed the recommendations you made to that sector. I also applaud the Members of Parliament from the sugar-growing areas who came in person and submitted their oral and written memorandum about the revival of this sector. That showed the valour with which Members of Parliament across the sugar belt region hold this sector and their willingness to do their best to protect the interest of sugarcane farmers. Most importantly, we saw a bipartisan approach where Members of Parliament across the political divide had one united stand. They want to revitalise the sugar The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}