MPs strike deal on contested sugar reforms

Members of Parliament have successfully resolved a prolonged deadlock concerning the Sugar Bill, 2022, a significant piece of legislation aimed at enhancing regulation within the sugar sector.

This paves the way for crucial reforms to be implemented.

The lawmakers have reached a consensus on key amendments to the bill, allowing it to advance to President William Ruto for signing into law.

Once enacted, sugar cane will no longer be classified as a scheduled crop under the Agriculture and Food Authority (AFA).

Instead, a new Kenya Sugar Board will be established to oversee the industry.

"We have reached an agreement and we have the final draft. This means that anytime from now, the President will sign the Bill into law," stated Senate Agriculture Committee Chairperson James Murango.

With the new board in place, its responsibilities will include regulating, developing, and promoting the sugar industry, as well as ensuring equitable access to industry benefits for all stakeholders.

Sugar decline

Murango highlighted that previous regulatory issues contributed to the decline of sugar cane farming in Western Kenya, leading to an increase in sugar imports.

"Removing sugar cane from being a scheduled crop in AFA means sugar will be given special attention," Murango explained.

"The Board will also be consulted before rushing to do any imports to safeguard farmers. The Agriculture Minister will have delegated powers to regulate sugar importation and its by-products."

The legislation, once signed, is expected to revitalise the sugar industry, ensuring it meets domestic demand and generates a surplus for export, thereby benefiting millions of Kenyans and enhancing livelihoods.

Last month, a joint mediation committee comprised of the Senate and National Assembly was formed to address the impasse surrounding the bill.

Differences arose over regulatory roles, pricing mechanisms, and the need for improved protection of farmers from exploitation by millers and traders.

Additionally, the regulation of sugar imports, which often flood the local market and depress prices for domestically produced sugar, remained a contentious point.

Farmers and millers have advocated for stricter controls on imports to protect the local industry from unfair competition, though some stakeholders warn that restricting imports could lead to higher consumer prices.

The proposed bill includes the establishment of a sugar development levy on domestic sugar, allocating 30 per cent for factory development and rehabilitation, as well as research and training at the Kenya Sugar Research and Training Institute.

Forty per cent of the funds will support cane development and productivity enhancement, while 15 per cent will be directed to sugar-producing regions for infrastructural development based on production capacity.

"We will have conditional grants going directly to the sugar belts to take care of the roads on a pro-rata basis. If Kisumu is producing more sugar, then it will get more of the money," Murango said.

In line with recommendations from former Kakamega Governor Wycliffe Oparanya's sugar taskforce report, the catchment area for sugar production will be standardised for both election purposes and cane management to prevent cane poaching.

To ensure better regulation, a miller will not be allowed to purchase sugar cane from a grower unless the grower has a valid supply agreement with the miller or the miller's factory is located within the grower's catchment area.

The sugar industry remains a crucial component of the Kenyan economy, particularly in the western region, where it supports over 400,000 small-scale farmers.

The successful passage of the Sugar Bill marks a significant step forward for both the industry and its stakeholders.