13 county Governments want fresh negotiations on privatization process of Sugar Factories.

 Kisumu Deputy Governor Dr. Mathews Owili{L}shares a light moment with Agriculture Cabinet Secretary Willy Bett during a meeting to discuss privatization of public controlled sugar companies.13 Counties want the National government to engage them in fresh talks to discuss the issue of privatization-Photo By Dickson Odhiambo

By Dickson Odhiambo.

 January 20, 2018.

13 county Governments want fresh negotiations on privatization process of Sugar Factories.

A TOTAL of 13 County Governments within Sugar growing areas now want the National government to engage them in fresh talks to discuss the issue of privatization of the public sector -owned sugar millers within their areas.

The 13 counties under the banner of the Lake Region Economic Block {LREB} say it will be prudent for fresh discussion held over the issue of wanting to privatize the public controlled sugar companies within their various areas of jurisdiction.

The 13 include Kisumu, Siaya, Migori, Homa Bay, Kisii, Nyamira, Narok, Kericho, Nandi, Kakamega, Vihiga, Busia and Bungoma.

They want the National Government through the Privatization Commission to kick off a fresh round of negotiations on the issue involving all the stakeholders while arguing that this is the best approach towards this.

Kisumu Governor Prof. Peter Anyang Nyong’o says privatization process of any state corporation is a serious undertaking that requires full consideration and elaborate planning, taking into account various elements that may go wrong to undermine the privatization process or eliminate the value of the exercise altogether.

In a speech read on his behalf by his Deputy Dr. Mathews Owili, Nyong’o says the first thing is to know what guiding framework will be there for privatization process to be successful, adding that the issue of key actors and their roles in the entire process must be considered.

Nyong’o says preparation of the sugar industry for the process is very vital and this includes how to make the sugar factories and the industry attractive to potential private investors.

Nyong’o adds that there is indeed need for conceptual Framework for the privatization process which he argues is the logic and road for the privatization exercise.

“It will make a lot of sense to embark on privatizing the sugar mills within a broad context of transfer of assets and liabilities, in land and agriculture previously under the control of the national Government to the county Governments as this is in line with the schedule Four of the constitution and this means the process will be taking place within an established environment of constitutionalism and commitment  to strengthen devolution,” says Governor Nyong’o, adding that the process should not be a piecemeal or isolated act.

Nandi Governor Stephen Sang who represented three Counties of Nandi, Uasin Gishu and Trans Nzioa during the meeting says there is need for bottoms up approach on the issue of privatization.

 Sang says the privatization debate should be discussed a fresh putting the needs farmers at the centre of focus.

He says there is need to go back to the sugar cane farmers, stakeholders and each of the individual factories.

“Going by the presentation the state of Miwani Sugar Company is completely different from state of Nzoia sugar Company,” Sang says.

He adds that there should be stakeholder discussions about the very basic issues as to whether to have privatize or nor discussions.

Sang says that the issue of whom to be dealt with on the issue such as that of land should be known

Migori Governor who is also the Council of Governor Agriculture Committee chairman Okoth Obado  says  the land where the Sugar  factories stand belongs to the community hence they must fully be involved on the issue of getting into of privatization process.

 Obado says historically, a sugar company like South Nyanza Sugar Company {SONY}  has been in existence for 40 years and wonders why the machines cannot be replaced by the new milling ones.

“Why not get rid of the old machine and replace with new mills, ask farmers to grow sugarcane and have donors invest in the sugar companies,” said Governor Obado.

Obado says It is as if the privatization process are being influenced or put under pressure by COMESA.

“Can you mention a genuine net sugar exporter in the COMESA countries,” Obado asks. 

Agriculture, Livestock and Fisheries Cabinet secretary Willy Bett says the national government and Council of Governors should sort out the ownership of the nuclear sugar companies land by the end of March this year

“National government and the Council of Governor should meet to iron out all those technical issues as we go back to the specific factories to try to get uniqueness of certain sugar companies’ institutions,” says Bett.

The process of privatization which kicked off around 2008 has been facing hitches because sugar cane farmers who have been a major stakeholder have a feeling that they are being given a raw deal in the entire process which has made them vehemently opposing it until their genuine concerns are addressed.

One of the key issues the farmers want to address is the one on them owning 51 percent of shares when these sugar companies are privatized.

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