KAKAMEGA, Kenya, Jan 20 — The government has released Sh150 million bonus for sugar farmers who have supplied cane to Kakamega’s Mumias Sugar Factory, the first such payment in the sector.
President William Ruto said the historic bonus payment to farmers not only validates the success of the reforms introduced in the sugar sector, but is also evidence of the potential to uplift farmers and support tens of thousands of livelihoods.
“With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attaining surplus production and commence regional exports by 2026, turning sugarcane cultivation into a viable and rewarding venture,” he said.
Speaking during the launch of the bonus payments, President Ruto pointed out that the reforms carried out in the sugar industry have yielded significant results.
He pointed out that the writing off of Sh117 billion in debts, including the payment of Sh1.7 billion in farmers’ arrears and Sh650 million owed to employees, was part of the effort to revive the sector.
In line with other measures outlined in the 2019 Sugar Taskforce, President Ruto said he had assented to the Sugar Act 2024 that establishes sugarcane catchment areas to better manage supply, synchronise milling operations and improve efficiency.
“We have asked the new Cabinet Secretary for Agriculture Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector,” he said.
The President said the government is also distributing subsidised fertiliser to enhance productivity and increase farmers’ income.
“Last year, we produced a record 832,000 metric tonnes of sugar, and we anticipate that production will continue growing. By 2026, Kenya should be a surplus producer of sugar and begin exporting to the regional market,” said President Ruto.
Replicting Mumias recovery
He said the bonus payment would have a substantial impact on the growth of the sugar sector, which is a key target for Kenya’s export plans.
“To support this, 50 per cent of the annual rent paid to the bank will be distributed as a bonus to farmers on a pro-rata basis, depending on the quantity of sugarcane each farmer supplies to the miller,” President Ruto explained.
The President said this will ensure fairness and transparency, and will be adjusted appropriately on the basis of the company’s performance.
He pointed out that the model can be replicated in other publicly-owned sugar companies once they are leased, and the board will conduct a comprehensive study to develop a robust system of giving incentives to farmers.
“Additionally, Cane Testing Units will be utilised to ensure farmers receive additional payments based on the quality of their cane along with the payments based on weight,” he said.
The President asked Kagwe to increase subsidised fertiliser for sugarcane farmers from 700,000 bags last year to one million bags this year.
He said it was encouraging that farmers who supply cane to Mumias Sugar Company are being paid within seven days.
At the same time, President Ruto assured Kenyans that he was keen on implementing all the promises Kenya Kwanza made in its manifesto.
He said Kenya’s transformation has been delayed because the country lacked leaders with the capacity and courage to implement plans that will change the lives of the country’s citizens.
“The politics of dishonesty is the problem in Kenya. Leaders promise many things during campaigns, but fail to implement when they are elected. In my case, I promised affordable housing, universal healthcare and revival of the sugar sector, among others, and I am implementing what I promised Kenyans,” President Ruto said.
Defending SHA
Meanwhile, President Ruto has told off politicians opposed to the Social Health Authority, the new health insurance scheme recently introduced by the government, in the efforts to implement universal health coverage.
He said it was wrong for some leaders to mislead Kenyans about the programme.
“Instead of some leaders speaking for themselves that they do not want to pay more, they claim that the people do not want the programme. Where did you meet the people?” the President wondered.
He explained that under the new scheme, those earning more are paying more to cover for needy and vulnerable Kenyans.
Deputy President Kithure Kindiki said the government is investing in critical value chains in agriculture, livestock, fisheries, the blue economy and mining.
“The government is using significant resources in these critical value chains to improve the lives of our people,” he said.
National Assembly Speaker Moses Wetangula praised President Ruto for the bold move to revive the sugar sector, saying it is the economic life of western Kenya.
“In fact, Mumias Sugar factory was a case study of rural agronomy. People those days wanted things to be done like at Mumias factory,” he said.
He said the Sugar Act will help eliminate cartels in the sector.
Prime Cabinet Secretary Musalia Mudavadi, Cabinet Secretary Wycliffe Oparanya, Governors Fernandes Barasa (Kakamega) and Ken Lusaka (Bungoma), COTU Secretary-General Francis Atwoli and more than 20 MPs accompanied the President.
