The Cabinet on Tuesday, August 8, sanctioned the extension of the framework for duty-free importation of milled sugar to bridge the supply deficit of the much-needed commodity.
The Cabinet meeting chaired by President William Ruto arrived at this intervention to address the high cost of sugar in the country.
“To address the high retail price of sugar fueled by an acute cane shortage in the country, Cabinet sanctioned the extension of the framework for duty-free importation of milled sugar to bridge the supply deficit,” read the statement.
In recent weeks, sugar prices have increased due to acute cane shortage which has seen registered sugar millers suspend operations until November.
Revival of Sugar Companies
Also, Cabinet considered and approved the programme for the revival and commercialization of State-owned Sugar Companies, being: Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company, Muhoroni Sugar Company, South Nyanza Sugar Company, and Mumias Sugar Company.
“Today’s decision sets the Sugar Sub-Sector on a path of renewal by vacating the earlier decision by Cabinet to privatize State-owned entities within the sub-sector.
If the proposal by Cabinet receives Parliamentary approval, the State-owned entities would be operated under a lease and operate framework,” read part of the statement.
Ruto chaired the cabinet meeting at the Sagana State Lodge in Nyeri County on Tuesday, August 8 as he concludes his tour of the region.
Also Read: Sugar Crisis Looms as Millers Suspend Operations
Sugar Companies Suspend Operations
In July, reports indicated that Kenya was staring at a sugar crisis after several sugar companies suspended production until November.
The Agriculture and Food Authority (AFA) directed some sugar factories to halt sugar production for more than four months.
In addition, AFA said the move seeks to allow ample time for the maturation of sugarcane.
Other Cabinet Decisions
Further, the cabinet considered and approved the proposal to revive and commercialize the National Oil Corporation of Kenya (NOCK).
Under the proposed turnaround strategy, NOCK will benefit from a partnership that restructures it into three subsidiaries segmented around the petroleum products value-chain as follows:
NOC Upstream Limited, focused on exploration and upstream production activities and services; NOC Downstream Limited, focused on marketing and distribution of petroleum products; and NOC Trading Limited, specializing in holding strategic stocks of petroleum products for import and export.
In addition, the cabinet approved the establishment of the Bomas International Convention Centre (BICC).
This will position Kenya as the destination of choice for Meetings, Incentives, Conferences and Exhibitions (MICE) tourism.
It will also cement Kenya’s place as a diplomatic and commercial hub,
The ultra-modern convention will feature a Conference Centre, a Presidential Pavilion and at least five hotels.
To prepare the youth with the requisite skills to enhance their competitiveness for employment as well as their entrepreneurial skills, Cabinet approved the upscaling of the Kenya Youth Empowerment and Opportunity Project (KYEOP) to the National Youth Opportunities Towards Advancement (NYOTA) Programme.
The up-scale programme will target youth aged between 18 to 35 in all our nation’s 47 counties.
To enhance the earnings of dairy farmers and improve their livelihoods, the Cabinet considered and approved the framework for duty free importation of raw materials for processing animal feeds.
The State intervention seeks to address the cost of production of animal feeds as part of the long-term strategy to enhance the competitiveness of Kenya’s dairy sector within the region.
