Kenya’s Cabinet has abandoned plans to privatize state-owned sugar firms and instead approved the revitalization and commercialization of Mumias Sugar, Nzoia, Muhoroni, Chemelil, Miwani, and South Nyanza companies. President William Ruto chaired the Tuesday meeting in Sagana state lodge, where this decision was made, highlighting that it marks a transformative step for the sugar sub-sector. Pending parliamentary approval, these state entities will be managed under a lease and operating framework.
In 2015, Kenya wrote off a substantial debt of Kshs 39.7 billion owed by the mentioned state-owned sugar firms to facilitate their prospective privatization. However, recognizing the need for modernization to compete with other sugar producers, the government has instead chosen to focus on their revival.
To address sugar’s steep retail prices, which are linked to a shortage of sugarcane in key regions, the Cabinet has authorized an extension of the duty-free milled sugar importation framework to bridge the supply gap.
Read more: Privatization Of Kenyan State Enterprises Not A Novel Concept
The Cabinet meeting also covered various policies, state programs, and interventions aligned with the administration’s Bottom-Up Economic Transformation Agenda (BETA) for a stronger Kenya. The Cabinet emphasized that these actions reinforce the socio-economic foundation, enhancing inter-generational equity by reviving state corporations in the agriculture, petroleum, and energy sectors.
Additionally, the Cabinet approved the National Labour Policy to better regulate all forms of labour, aiming to bolster the country’s international labour presence while ensuring lawful and safe employment opportunities for Kenyans abroad. The policy seeks to address systemic inefficiencies and enable more Kenyans to explore international opportunities, potentially doubling Diaspora remittances to the nation.
Furthermore, the Cabinet greenlit a fresh round of registration under the Inua Jamii Safety Net Programme for senior citizens, disabled individuals, and vulnerable households. The process will commence on September 1st 2023, with the current program benefiting over a million Kenyans, including orphans, elderly citizens, and those with disabilities.
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