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{
    "id": 1398573,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1398573/?format=api",
    "text_counter": 223,
    "type": "speech",
    "speaker_name": "Sen. Osotsi",
    "speaker_title": "",
    "speaker": {
        "id": 13588,
        "legal_name": "Osotsi Godfrey Otieno",
        "slug": "osotsi-godfrey-otieno"
    },
    "content": "materials which is very crucial to the industry. Taking note that last year, the sugar industries in western part of the country closed because there were no raw materials and that affected the economy of the region. Therefore, a lot of focus should be put around cane development and productivity. Still on Development Levy, there is a proposal that five per cent should go to farmers’ organization and 15 per cent to research and training. A lot needs to be put on farmers’ organization because you know we have out grower companies which most of them have died. Out grower companies were a good idea to try provide avenues to enhance cane development and productivity. Mr. Temporary Speaker, Sir, in my view, five per cent is too little and should be enhanced to 10 per cent. The 15 per cent that is being taken to Kenya Sugar Research Foundation, which is a Government institution, a portion of it should be taken to the farmers’ organization to enhance their participation in cane development and other factors. Mr. Temporary Speaker, Sir, it is proposed that 15 per cent should go towards infrastructure development through Kenya Rural Roads Authority (KeRRA). I am among the people who are saying no to KeRRA. We must critically think of where to take this money because KeRRA in this country has become National Assembly Road Authority. That is the truth and they give money to Members of Parliament (MPs) to maintain roads that the same counties say they are maintaining. This aspect of KeRRA must be looked. I am proposing that instead of KeRRA, we take this money to the counties, which we can oversight as Senators. We cannot have a scenario where money generated from our sugarcane growing areas is taken to the national institution, which then brings the back the money through Members of the National Assembly. We must look into that one area. The Members who contributed yesterday also had an issue with this aspect of KeRRA. When we go to the Committee of the Whole, we need to look at this matter very critically. Is it worthy to give 15 per cent of the Sugar Development Levy to Kenya Rural Roads Authority (KeRRA) when we have the counties in those areas, which can maintain those roads? We will be there to oversight that. There is also a proposal on the pricing formula committee. In the pricing formula, they are talking about factors to be considered in determining the pricing formula. They have talked about several factors that I fully agree with. One of them is the aspect of delayed harvesting of cane. It is a cost to the farmers. When there is delayed harvesting of cane, it impacts the farmer and that is a cost. That should be a factor in determining the pricing formula. However, there is one factor that has been omitted. It is an international pricing factor. When we are looking at the pricing, we must look at the pricing factors in other jurisdictions. Why is it that the cost of producing sugar in Brazil and Swaziland here is lower than in Kenya? That is an important factor for consideration in determining the pricing formula. How I wish that, that is included in the Bill. Clause 59 is very interesting. It talks about the incorporation of farmers' representation in the Board of private sugar mills. I do not know how this will work because this contradicts the Companies Act. I am an investor. I have come to set up a factory in Kenya. You are telling me that in your factory, you must bring in someone else The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}