NATIONAL CHAMBER OF COMMERCE AND INDUSTRY WANTS TO ACQUIRE WESTERN KENYA BASED SUGAR MILLS

 

The KNCCI Lake Region Economic bloc spokesman Herman Kasili said: “This is an extremely important economic lifeline to this region therefore we must let the commerce and industry professionals run it.

          Mr. Richard Ngatia president of KNCCI

The Kenya National Chamber of Commerce and Industry (KNCCI) want to be at the centre of the resuscitation of the ailing multi-billion shillings sugar industry. The body is ready to rise more than Kshs. 150 billion to actualize this effort.

The KNCCI leaders from the recently created Lake Region Economic bloc counties are also demanding that the chamber must be given priority in the acquisition of shares from the state owned sugar companies once the privatization process begins.

The KNCCI Lake Region Economic bloc spokesman Herman Kasili said: “This is an extremely important economic lifeline to this region therefore we must let the commerce and industry professionals run it for it to get back to its feet. We are ready to raise more the money to that effort. Politicians who are easily compromised must be kept out at all costs."

Mr. Kasili warned that there was great danger of the sugar industry collapsing the way the textile and cotton industry went, therefore the national and county governments, the KNCCI, investors, sugarcane farmers and stakeholders must be at the centre of its immediate resuscitation.

The KNCCI leaders from more than 18 branches in the region’s economic bloc made the resolutions in a recent meeting chaired by Mr. Kasili “The more than one million sugarcane farmers from the region are critical to the resuscitation of the collapsing sub-sector. Payment of their outstanding dues of nearly Kshs. 2 billion by the millers is very critical and we highly support the government’s decision to pay them the dues of Kshs. 1.9 billion,” read part of the leaders’ resolutions.

The KNCCI announcements are coming soon after the Intergovernmental Budget and Economic Council (IBEC) meeting chaired by Deputy President William Ruto recently agreed that the government will clear debts owed to sugarcane farmers. Consequently, Treasury will release more than Sh1.9 billion made available by the government to carry out the exercise.

Addressing the IBEC 11th Ordinary Session the Treasury Cabinet secretary Henry Rotich said verification of farmers to be paid had been completed. The pending issue would now be to come up with a long-term payment solution to farmers by millers.

Mr. Rotich said farmers would be paid directly so as to avoid the historical challenges that they have been facing. The DP urged farmers to supply sugarcane to factories that can pay adding that until there is some clarity on what would happen to the ailing sugarcane millers, farmers should deliver their produce to those entities that can honor their obligations. 

The Council of Governors’ chairman and Kakamega County governor Wycliffe Oparanya’s Sugar Industry Fact Finding Task Force had suspended its activities pending payment of the monies owed to the sugarcane farmers.

The KNCCI said leaders were targeting the grounded giant Mumias Sugar Company, Nzoia Sugar, Chemilil, South Nyanza Sugar Company (SONY), Miwani and Muhoroni for acquisition, arguing that they had been messed up by past chief executives appointed through political influence.

The KNCCI leaders resolved that in all commercial and industrial issues concerning the region the chamber must be at centre stage to ensure that matters did not degenerate to economic and financial messes endangering the livelihoods of millions of people in the region.

Mr. Wako said: “We have therefore resolved all the county governments in these regions very closely. We are aware of the fact that they annually handle billions of shillings meant for public interest projects and as professionals the KNCCI must be involved in all activities, right from public participation, project, choices, and all the processes through implementation to completion.”

He said the other critical area the leaders had resolved on was engaging both local and international investors to identify the wide range of existing investment opportunities in the bloc and committing their investments – not only for profit but also the economic blocs commercial and industrial development.