President William Ruto has announced that Kenya is no longer on the commercial safeguards list for sugar, ending a 25-year period under the restrictions.
Speaking at the Kenya International Convention Centre (KICC) in Nairobi on November 4, Ruto attributed the development to increased local sugar production, saying the country now produces enough sugar and no longer needs the safeguards.
“You remember that we’ve had commercial safeguards for 25 years. Every year we are asking for commercial safeguards. Now I can announce formally that Kenya is off the commercial safeguard list on sugar. Why? Because we are producing enough sugar in Kenya. We don’t need any safeguards,” Ruto said.
The President said the government had also written off approximately Ksh117 billion in debt owed by sugar factories, freeing them from financial obligations that had accumulated over nearly three decades.
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He added that the government had reorganised the management of state-owned sugar mills by contracting their operations to private investors, a move he said had improved payments to farmers and workers.
“We are keeping more of that value in Kenya, increasing farmers’ earnings and creating jobs. And let me speak about the industry space. In the sugar industry space, we had a huge debt of close to KSh117 billion on our sugar factories. That debt had been rolling for the last almost 30 years.”
Ruto Announces First-Ever Sugarcane Farmers’ Bonuses in Four Factories
President Ruto said sugarcane farmers supplying four factories would receive bonuses for the first time in November, following changes in the management of government-owned sugar mills.
He said the government had contracted private companies to manage the state-owned mills, adding that the new arrangement had improved payments to farmers and workers in the sugar industry.
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“And this month, for the first time in four factories, we are going to pay a bonus to sugarcane farmers. For the first time. We have also licensed another five sugar factories. Two of them are already in production. And cumulatively, they are employing 20,000 young people, including the five new factories,” he said.
According to Ruto, farmers were now receiving payments on time, while factory workers were also being paid without delays.
The President also revealed that the government had licensed five additional sugar factories, two of which had already started production.
He said the five new factories collectively employ 20,000 young people, adding that the expansion has increased the country’s sugar production.
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