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{
    "id": 520223,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/520223/?format=api",
    "text_counter": 231,
    "type": "speech",
    "speaker_name": "Hon. Wakhungu",
    "speaker_title": "",
    "speaker": {
        "id": 1889,
        "legal_name": "Chrisantus Wamalwa Wakhungu",
        "slug": "chrisantus-wamalwa-wakhungu"
    },
    "content": "Thank you, hon. Speaker. I rise to support this Report. In many jurisdictions, when you talk of privatisation, it is a principle whereby you give the management of public entities to the private sector for purposes of, maybe, improving efficiency and returns on investments. As we try to privatise those firms, you realize that their geographical distribution is in Western and Nyanza regions. The people of Nyanza and Western rely on sugar for their livelihoods. This privatisation should be able to add value and improve the livelihoods of those people. It should not work to the disadvantage of those people. I listened when the Chairperson of the Committee was presenting this Report. He indicated that they are trying to look for a strategic investor who will be having a minimum of 20 per cent shareholding. I support that because going by the example of Mumias, where the shareholding was not of an absolute majority, it becomes very difficult in terms of making some strategic decisions. Having said that, I was just wondering who that strategic investor is. That strategic investor should be one who has the interest of those respective people at heart. The county governments are elected by the people. If they are willing, they would be very good options to be the strategic investors. One of the critical things about those sugar firms is that they have obsolete machinery. The technology is also wanting. So, the costs of production are very high and they cannot compete. The Common Market for Eastern and Southern Africa (COMESA) safeguards already came to an end in February. So, those firms cannot compete with obsolete machinery and the high production costs. So, the question is this: As the Government is trying to privatise those sugar factories, what measures has it put in place so that the strategic investor can have a competitive edge? Investing in machinery is very expensive. Most of the sugar that comes from outside this country enjoys economies of scale. The production cost is low and so, they can compete. We need to get a strategic investor who is going to put the aspect of machinery into consideration. Some of those machines have outdated technology and they are not efficient. That is very critical. So, it is our request to the Government that as we look for the strategic partner, there are some critical things that we must look into. Whoever comes in should possess those critical success factors. Hon. Justice Kemei raised a very important issue of land. The land belongs to the people. So, there should be clear criteria on how the issues of land are going to be handled. I appreciate what the Committee has done. However, they should have invited the respective Members of Parliament from those sugar-growing regions because they represent the people. The issue of land is very critical. That land belongs to the community. They must put a measure in place on how those people are going to be compensated. Otherwise, when you talk of privatisation, it is just the machinery to be privatised and not the land. It is important that, as we move on, the Committee should look into this issue and invite all the key stakeholders to sort out the issues as far as land is concerned. Hon. Speaker, those sugar firms have a high level of indebtedness. I have looked at the Report and the level of indebtedness is Kshs59 billion. We want to thank the Jubilee Government because it has offset Kshs33 billion. However, the challenge is: Where are we going to get the balance? So, my humble request to the Government is that 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."
}