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{
"id": 133664,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/133664/?format=api",
"text_counter": 143,
"type": "speech",
"speaker_name": "Mr. Samoei",
"speaker_title": "August 18, 2009 PARLIAMENTARY DEBATES 2648 The Minister for Agriculture",
"speaker": {
"id": 204,
"legal_name": "William Samoei Ruto",
"slug": "william-ruto"
},
"content": " Thank you, Mr. Speaker, Sir, for giving me an opportunity to make two very brief statements. I want to make a statement on the progress that we have so far made on the Privatization of the Public Sector owned sugar companies. The sugar subsector supports approximately six million Kenyans. It is a major source of income to these Kenyans. Following the launch of the free trade area, on 31st October, 2000 by members of the Common Market for Eastern and Southern Africa (COMESA), Kenya, due to the state of unpreparedness of the sugar industry, applied for protection of the sector by way of safeguards under Article 61 of the COMESA Treaty. The safeguard was granted for a period of four years from the end of 2008 and is due to expire in 2012. As part of this requirement, the country is expected inter alia to undertake very viable steps towards the privatization of the public owned mills by November, 2009. So far, the following steps and actions have been undertaken: - On 11th of December, 2008, I laid on the Table the privatization programme in the Cabinet and it was approved. On 20th May, 2009, we signed a contract with a consultancy firm, Ernst and Young consortium. The Privatization Commission signed on behalf of the government. On 2nd July, 2009, the consultantâs inception Report was presented to the Privatization Commission outlining the key issues and project time table. On 21st to 23rd of July, 2009, the Privatization Commission and members of the sugar companies made a familiarization visit and had meetings with the Boards of Directorsâ Management and leaders of out growers associations. I expect to receive a due diligence report by the consultants on 1st September, 2009, for onward transmission to the Cabinet, detailing the works that are going on now, operational, financial, legal and technical analysis. We have reduced the due diligence from six months to two months. There is also assessment of financial, technical, agricultural and human resource needs of each sugar company. We have also embarked on a detailed analysis of alternative privatization approaches and preparation of recommendations on the best option to mobilize the required resources. Lastly, there is a detailed preparation of restructuring proposals for each of the sugar companies, including proposals for write off of excess debt. I will just list briefly the time table that is going to guide this exercise from when I receive the due diligence report. On 27th October, 2009, we expect to submit enterprise analysis and due diligence reports, market research reports, social economic reports, restructuring plans and indicative valuations. During the same month, we expect to submit the same proposals, a privatization strategy and method report. We also intend to submit the proposed amendments to the relevant laws, memoranda and articles of association and other company documents during the same month of October. This will be necessary to facilitate the smooth privatization of the various public owned sugar companies. I intend to submit a detailed privatization proposal to the Cabinet in November this year. The same month, after the Cabinet has gone through the proposal, I intend to Table a Sessional Paper on write-off of excess debt and amendments of Acts of Parliament, to this House. Mr. Speaker, Sir, I also intend to submit a valuation report and reserve price for consideration. In January next year, we intend to do the pre-qualification exercise for bids of the various sugar factories. In February the same year, we intend to submit revised"
}