A parliamentary committee has opened a probe on the leasing of the struggling public sugar millers, as lawmakers demanded answers on the faces behind the private entities that took control of the process.
The National Assembly Committee on Agriculture, Livestock and Fisheries chaired by John Mutunga will seek to unravel a number of issues that MPs have raised regarding the process.
On Tuesday, lawmakers said the leasing process announced by the government in 2013 has been shrouded in deep secrecy, with details of the investors remaining a top secret.
The matter was raised by Muhoroni MP James K’Oyoo who decried that the manner under which the process is being undertaken has left many questions unanswered, with key stakeholders whether it will achieve its intended purposes.
The public millers include Chemelil, Miwani, Muhoroni, Nzoia, South Nyanza Sugar Company and Mumias Sugar.
Insiders said that Kibos Sugar and Allied Industries Limited is set to take over Chemelil Sugar Company, while either Butali or Busia Sugar may be awarded to Sony Sugar. West Valley, a relatively new player in the sector, is tipped to manage Muhoroni Sugar Company.
However, the decision on the new investor for Nzoia Sugar Company remains pending, following stiff resistance from local leaders and members of the community.
As part of the revitalisation plan, the government initiated the process of leasing the five public sugar firms to private investors for the purpose of modernisation, efficient management and increased productivity.
However, while raising the matter in the House, Mr K’Oyoo regretted the leasing process had been hijacked by cartels and well-connected people at the expense of farmers and locals.
“I want the committee to tell this House, the criteria that was used in tender evaluation regarding the leasing of Muhoroni and Chemelil sugar companies since these are public properties, everything about them should be public,” Mr K’Oyoo said.
The government will also be required to provide Parliament names of individuals who sat in the tender committees for the evaluation of bids for all the five sugar millers.
“We want whoever was involved to come out in public and put everything on the table, this is what we wanted, these are the people that tendered, this is why so and so was disqualified and this met the threshold,” he added.
The lawmakers now want the committee on agriculture to ensure that all details of the investors that took control of the millers are laid bare to the people since the sugar companies are public institutions.
In its quest to get to the bottom of the matter, lawmakers want the committee to make public through its report, the number of people and companies who tendered to take over running of the millers.
The lawmakers also want the government to provide all the tenders that were submitted by all bidders that expressed interest in taking over the running of the companies, bids that were rejected, and an explanation of why the bids did not go through.
Mr K’Oyoo expressed concern that the manner the entire process is being done has caused anxiety among farmers and the general population from the sugar-growing regions.
The lawmaker warned that if the matter is not handled properly, then the intended purpose of improving efficiency will not be achieved putting the livelihood of thousands of people from the sugar belt region at risk.
“The constituencies where these firms are located are already demonstrating and the farmers will soon join them,” Mr K’Oyoo said.
Mr K’Oyoo said the matter should be handled with care since the sugar industry creates employment, food security, regional development, and improvement of livelihood for more than 8 million Kenyans.
Tinderet MP Julius Melly termed the issue as a pertinent issue, especially in the sugar belt regions.
“These companies are public entities, we laud the government for the reforms, but the reforms should be transparent, people should be involved and engaged in every process that is going on but the other day, we had a new investor is coming in farmers now say the person is going to make the firms as collection centres for sugarcane which is putting everybody in jittery,” Mr Melly said.
“This should be treated with urgency so that the public does not lose anything,” he added.
Suba South MP Caroli Omondi said the matter is urgent and they are waiting for answers from the government including the allegations of grabbing of Miwani land.
The cabinet in October 2023 endorsed the write-off of Sh117 billion debts public sugar mills owe the state following parliamentary approval before leasing the process to private investors.
