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{
    "id": 664254,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/664254/?format=api",
    "text_counter": 43,
    "type": "speech",
    "speaker_name": "Hon. Wakhungu",
    "speaker_title": "",
    "speaker": {
        "id": 1889,
        "legal_name": "Chrisantus Wamalwa Wakhungu",
        "slug": "chrisantus-wamalwa-wakhungu"
    },
    "content": "will add value in the production of sugar and help the small scale sugarcane farmer to compete with the rest of cane farmers in the world. Another issue is the fuel levy. Once you raise the levy, you increase the cost of living. In ploughing, the common farmer relies on diesel. In other words, the production cost will still go up. That is why we say that the Budget Statement that was presented by CS Rotich did not put into consideration the common mwananchi. The moment the fuel levy goes up, transport cost will go up. The common mwananchi who uses boda boda pays more because once the price of fuel goes up, transport cost goes up. We need to look at these issues once they come to appropriation. How are we going to contain this and defend the common mwananchi ? The other issue is about the COMESA region. I know that whatever sugar is produced in this country cannot meet the demand. Because of that shortage, we must import some sugar. We have a liberalised economy and I call upon KRA to put measures in place to ensure that sugar that is imported from outside is taxed for purposes of protecting the local cane farmer. The other important issue that I want to talk about is that of fertilizers. I brought a Bill on production of fertilizers locally. When it comes to growing sugarcane, one of the critical inputs is fertilizer. Fertilizers that cane and maize farmers use are very expensive and way beyond the local farmer. I am calling upon the Jubilee Government to move with speed and put up the proposed fertilizers factory in Eldoret. Once the factory is in place, it will play a critical role in reducing the cost incurred by farmers. We need fertilizers that are suitable for specific soils in particular regions. Recently, we had a Motion on privatisation of Nzoia, Chemelil and Muhoroni sugar factories. The technology that is being used in those factories is outdated. Therefore, the level of efficiency is low. Sugar that is produced by those factories cannot compete favourably with cheap imports. It is important for the National Treasury and the Privatisation Commission to involve stakeholders including the county governments and the Members of Parliament from the cane growing areas, so that an amicable solution can be found in terms of finding the way forward as far as privatisation of the sugar mills is concerned. As I mentioned earlier, some of them lack efficiency because of the outdated technology that they are using. However much we try, however much money we put in them, it will just be drained. Mumias is the leading factory that we know. From research, it produces 60 per cent of the local sugar. The Kshs2 billion that the Government gave to the sugar sector is like a drop of water in the ocean. We are calling upon the Jubilee Government to bring more money. We are told that Mumias has a debt of about Kshs10 billion. If that is so, the rights issue that they had talked about must be fast-tracked, so that Mumis Sugar Company can be profitable. By doing this, we will improve the welfare of the poor cane farmer. I call upon my colleagues to support the removal of VAT, so that transportation of sugarcane can be exempted from taxation and we can have profitability. I would like to thank everyone who has contributed to this debate and encourage more Members to support this amendment Bill. I support."
}