Uganda sugar deal imaginary, government insists

August 20, 2015
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This has been on the back of Mumias Sugar - one of Kenya's biggest sugar companies - suffering massive financial losses/CFM
This has been on the back of Mumias Sugar – one of Kenya’s biggest sugar companies – suffering massive financial losses/CFM
NAIROBI, Kenya, Aug 20 – Acting Agriculture, Livestock and Fisheries CS Adan Mohammed says there is no trade agreement, neither was there any other deal that was signed during President Uhuru Kenyatta’s visit to Uganda earlier this month.

“We note with concern that some misleading reports have emerged purporting to be information on the bilateral discussions, alleging that President Kenyatta and President Museveni had signed an agreement on behalf of their governments to allow importation of sugar from Uganda,” said Mohamed.

He further clarified that the Uganda State visit saw the two governments only discuss trade and matters of bilateral nature.

Uganda has been on the spotlight following claims that the two Heads of State signed a deal that would see Uganda export sugar to Kenya.

This has been on the back of Mumias Sugar – one of Kenya’s biggest sugar companies – suffering massive financial losses.

“The government recognises that the sugar sector as an important strategic sector for our country and would like to assure millers, farmers and the public in general that all efforts are being made to streamline the sugar industry,” he said.

Kenya’s sugar deficit problem therefore calls for the country to import sugar from other countries.

“In order to bridge the deficit, imports are first sourced from East African Community partner states. The balance of the sugar imports are then sourced from COMESA member countries before exploring other international countries,” he added.

Mohamed however noted that the government was safeguarding farmers against uncontrolled sugar imports, stating that it had applied for a safeguard under the COMESA Treaty.

“It should be noted that the government and industry stakeholders take into account the local production and market situation before the quantities for importation are decided upon and consequently authorized.”

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