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Kenya: Ruto Vows to Shield Local Sugar
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The Nation (Nairobi)
20 May 2008
Posted to the web 19 May 2008
Nairobi
The Government is going to streamline importation of sugar in order to protect local millers from unfair competition from cheap imports.
Agriculture minister William Ruto said the local sugar sector is faced with numerous challenges but the Government would do everything possible to ensure local factories remain viable and competitive.
"I have already taken corrective measures as far as sugar exports is concerned and I am going to do the same to streamline sugar imports with the aim of protecting the local sugar sector," he said.
Reprieve
Kenya recently got a reprieve from the Common Market for Eastern and Southern Africa (Comesa) member states after they extended the period for controlled duty-free sugar imports from the region into the country to 2012. The previous agreement expired in February this year.
Many in the sugar industry have also lauded the Agriculture minister's move to revoke licenses of 16 sugar exporters.
"Some of these exporters have gained competitive advantage over local products since they claim Value Added Tax but the product does not leave the country," said the chairman of the Sugar Campaign for Change lobby group, Mr Peter Kegode.
Mr Kegode also said that some of the individuals holding import licences lack the capacity to use them.
"Since they are unable to import, they resort to trading in the licences," he said.
Mr Kegode proposed the creation of a Government agency to carry out sugar imports instead of relying on individuals.
The lobbyist also said that the country had a sugar deficit and it was therefore not necessary to export the commodity.
Among the problems that local millers cite are high taxation and lack of fast maturing cane varieties.
Polling centres
And the Kenya National Sugarcane Growers Union wants more polling centres in the sugar-growing areas before the May 27 Kenya Sugar Board directorship polls.
The union said the polling booths, as announced by the ministry of Agriculture, would encourage rigging because many of the over 3,000 growers may not vote because the centres are sparsely located.
"We want many polling centres in all the cane growing zones to enable many growers to exercise their democratic rights," the union's secretary general Ezra Okoth told the media in Migori Town.
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Reported by Daniel Otieno, Jackline Moraa, Cosmas Butunyi and Elisha Otieno
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