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{
    "id": 1510488,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1510488/?format=api",
    "text_counter": 124,
    "type": "speech",
    "speaker_name": "Tigania West, UDA",
    "speaker_title": "Hon. (Dr) John Mutunga Kanyuithia",
    "speaker": null,
    "content": "The Ministry of Agriculture and Livestock Development responded as follows: On the outline are the plans that have been put in place by the Ministry to urgently procure new crushing equipment for Sony Sugar Company to replace the old one, which was acquired in 1979 and now requires Ksh400 million for maintenance to keep it operating. The response from the Ministry is that, there is no plan by the Government to buy new crushing equipment for the company. Plans are underway to lease the company and the other four Government-owned sugar milling companies. The leasing of the mills will inject private sector capital that will be used to both modernise the mills and restore efficiency. The second issue was the immediate and long-term strategies the Government plans to implement to curb the frequent equipment breakdown, which heavily impacts the company's output and results in low production and morale among workers and farmers. The response is that the recently enacted Sugar Act No.11 of 2024 provides for a Sugar Development Levy. The Act appropriates 15 per cent of the levy for factory development, rehabilitation and maintenance. Sony Sugar Company will be able to access the funds to facilitate rehabilitation and factory maintenance. The third issue was why there has been a delay in paying the outstanding salary arrears of Ksh800 million for Sony Sugar Company workers who, in the past, have endured various economic hardships and poor working conditions at the factory. The response is that the Government approved funds for the repayment of salary arrears to employees of State-owned sugar companies. However, the funds have not yet been released due to lack of Exchequer. They will be released as soon as money is available. The fourth issue was to be provided with a comprehensive report on the status of sourcing strategic partners to invest in the restoration of the company to profitability, hence improving the welfare of the small-holder sugar farmers and the employees of Sony Sugar Company. The response is that the Cabinet approved the write-off of debts owed by State- owned companies in July 2023 and adopted the leasing model. Parliament approved the write-off of the debts, payments of suppliers, farmers, employees and arrears in September 2023. The leasing model was adopted, and the tender documents were prepared for a request for a proposal to be dealt with by the Ministry of Agriculture and Livestock Development. The request for proposal was floated with a closing date of 29th February 2024. The process was, however, stalled due to a petition filed in court by Mr. Martin Nyongesa Barasa, citing lack of public participation in the leasing model. Hon. Justice Chacha Mwita granted stay orders. The matter has been heard, and the ruling will be delivered on notice. Thank you, Hon. Temporary Speaker."
}