16 Feb 2016 in National Assembly:
Hon. Temporary Deputy Speaker, low productivity is another issue that we realised. Soil degradation and demoralisation of farmers, insufficient extension services and inefficiency in sugarcane harvesting are the other issues.
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16 Feb 2016 in National Assembly:
Due to the high cost of production, small-scale farmers do not enjoy the benefits of economies of scale. The other issue is the danger of the land system where sub-division of small holders thrive thus diminishing the land available for farming. We also observed the issue of the management of outgrower institutions where millers are forced to take up sugarcane 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.
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16 Feb 2016 in National Assembly:
development initiatives themselves. The Committee also observed the issue of mismanagement of milling factories leading to inefficiency of the institutions. There was also cheap sugar and unregulated sugar imports into the country, failure to enforce legislation on licencing of millers and importers leading to the licencing of too many millers in close proximity in disregard to the law and the capacity that is already established by the existing mills. There was also inefficiency by the Kenya Revenue Authority (KRA) and other security agencies in stopping smuggling of sugar through the border posts and entries.
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16 Feb 2016 in National Assembly:
Allow me to enumerate the various findings of the Committee. The first issue is the presence of cheap and unregulated sugar in the local market. The Committee established that huge quantities of sugar are entering into the market, which is unregulated and untaxed. There are issues of illegal sugar coming into the country. It is illegal in the sense that we have a COMESA quota which is supposed to fill the gap between sugar production and consumption deficit in this country. However, sometimes, the regulators issue licences or permits to importers at the wrong time when there is a lot ...
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16 Feb 2016 in National Assembly:
I have talked about the repackaging and contraband in the sugar sector, which is also found substantially in the amount of illegal sugar that is imported and repackaged in the local brands, bags and sealed identity evading the surveillance of the people who are supposed to check the identities. The other issue is about floating sugar import licences. Several companies, for example, the Rising Star, which have been licensed to import sugar were found to be importing sugar beyond the approved quantities. They have denied the KSB access to their godowns or warehouses to verify whether the quantities in stock ...
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16 Feb 2016 in National Assembly:
Hon. Temporary Deputy Speaker, they said that they cannot check and verify 100 per cent the commodities that are being declared. I have talked about the KSB, which does not follow proper mechanism in licensing of millers and enforcing importation rules. They also have a problem of manpower at every entry point. We also have inspectors from the KSB.
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16 Feb 2016 in National Assembly:
The other issue is the Sugar Development Levy Fund (SDLF), which the KSB is supposed to be disbursing for sugarcane development. The cane development scheme is against its own regulations and the KSB disburses money to millers without cane development. Sometimes a miller may not even have land on which to plant cane in the nuclear areas to sustain their own farms, but they are given money for cane development. It is, therefore, difficult to confirm where such millers take the money meant for cane development.
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16 Feb 2016 in National Assembly:
The final issue is on inter-regional trade and the rules of origin. Sometimes you find that even in the Common Market for Eastern and Southern Africa (COMESA) or the East Africa Community (EAC), countries like Uganda and Rwanda have no regulatory institutions which can sit with the KSB or the Agriculture, Fisheries and Food Authority (AFFA), which are regulatory bodies in our case, to develop rules of engagement. That is why you find that there is a tug-of- war between Kenya and Uganda in terms of sugar. We sometimes suspect that Uganda has no sufficient sugar to export to Kenya. ...
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16 Feb 2016 in National Assembly:
The other issue which I have mentioned is about the diminishing land size because of lack of land good policies. Land is being subdivided every now and then. Sugarcane farming is diminishing in this country. It is becoming difficult for farmers to enjoy economies of scale in this sense. Another thing we have noticed is the need to modernise sugar factories. Some factories sometimes perform very poorly. Most of the Government-owned sugar millers have 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.
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16 Feb 2016 in National Assembly:
been obsolete for many years. We have recommended fast-tracking of the privatisation of the five Government-owned sugar mills. The last issue is on farm inputs like fertilisers. Every sugar miller imports their own fertilisers and sells it to the farmers at very exorbitant prices. We thought that there should be some kind of mechanism for ensuring bulk procurement of items like fertiliser and farm machinery. The Committee recommendations are as follows :- (i) That the Government establishes a permanent inter-agency enforcement unit on sugar trade to enhance Government’s capacity to scrutinise, verify and monitor cross-border sugar trade in addition to ...
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