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"id": 46985,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/46985/?format=api",
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"speaker_name": "Mr. Mututho",
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"speaker": {
"id": 97,
"legal_name": "John Michael Njenga Mututho",
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"content": "Even their own factory, called Nzoia Sugar Company--- The Committee found everything very wanting. We are recommending total investigation into that particular factory by the relevant authorities. When you post losses of Kshs20 billion, and you are not paying the farmers, we must understand how you came to this loss of Kshs20 billion. It is mind boggling. I said yesterday that the whole industry is worth Kshs20 billion per annum. Now, one sugar factory by the name of Nzoia, has accumulated loses of Kshs20 billion. It is not possible. We also want to be told why SONY--- The Ministry came up there and told farmers to produce cane because they were going to expand the factory. The net effect of that was something even more scandalous. We have had mature cane over the last couple of years valued at Kshs2.8 billion. This cannot be purchased by anybody. Again, because of this archaic rule that you cannot have another factory within a 40-kilometer radius, no one is prepared to come and harvest that cane. So, ultimately we have a situation where farmers are stuck with cane valued at Kshs2.8 billion. They cannot sell it. They were promised by the Ministry of Agriculture that the new factory would be built. In fact, they brought equipment there and it is on the ground, but it has never been commissioned, installed or whatever. I want to remind the Ministry of Agriculture of the provisions of our Constitution at Article 46, which are related to services. At some point, you should accept the blame and be able to compensate the farmers. Mr. Temporary Deputy Speaker, Sir, I would encourage anybody listening to this, including hon. Members, to move in and cause this Ministry to compensate those farmers for potential loss and the loss they have incurred, after growing that cane worth Kshs2.8 billion on the instructions of the Ministry of Agriculture, which eventually could not commission the equipment. These are matters that were very carefully canvassed. We have evidence to this effect, and we are inviting hon. Members to look at the HANSARD on the public hearings related to this particular matter; it is over 3,300 pages. There is the question of cess. This is part of what makes 27 per cent taxable income of cane farmers. Why should we allow this? Why do we have people who are already suffering being taxed? Why do we have to put them into their graves with such a big tax debt? Sugar cane is overtaxed! I think it is the only crop that is taxed to a level of 27 per cent. Why do we have to have all these deductions? What we are saying is that all this taxation, if it must be there, must not be more than 10 per cent, so that we can have some income for the farmers, as this will make them enjoy growing sugar-cane. Mr. Temporary Deputy Speaker, Sir, I said passionately again, yesterday that I sought your further indulgence to mention one particular farmer. This farmer is from the Mumias area, and is doing 100 acres of cane. It is very good cane. When you look at it, it is deep green and very good. He has been farming since 1975. He says that from 1975, not a single farmer has been able to buy a new car. A new car is not a yardstick for economic measurement. However, I am very passionate about this new car idea. If from 1975 in all the 22 constituencies no farmer has afforded a new car, and indeed--- Mr. Temporary Deputy Speaker, Sir, the Committee went to pain to invite the farmer here. The farmer came clad in a suit that he bought in 1978, a three piece suit with stripes. That has remained his Sunday best, Monday best and Christmas best from 1978 to date. The important thing is, as I explained yesterday--- When you look at the whole thing, and look at a farmer who is doing 100 acres of sugar-cane and still remains with"
}