In a recent decision, the Cabinet has opted to halt the privatization of state-owned sugar companies, favoring instead the revival and commercialization of Nzoia, Chemelil, Miwani, Muhoroni, South Nyanza, and Mumias Sugar companies.
The move, discussed during a meeting chaired by President William Ruto, is seen as a pivotal step towards rejuvenating the struggling sugar sub-sector. Under this proposal, subject to parliamentary approval, the state-owned enterprises would be managed under a lease and operate framework, signifying a fresh approach to their administration.
Kenya had previously announced a write-off of 39.7 billion shillings in October 2015, aimed at easing the planned privatization of the aforementioned sugar companies. However, recognizing the need for modernization to remain competitive in the face of emerging sugar producers, the Cabinet has chosen a new direction.
Addressing the issue of high sugar retail prices stemming from a scarcity of cane in sugar belt regions, the Cabinet has also extended the framework for duty-free milled sugar imports to alleviate supply deficits.
Read Also: Kenyans to Expect Lower Sugar Prices in the Coming Weeks
The meeting, convened at State Lodge, Sagana, deliberated over a range of bills, policies, and state initiatives as part of the administration’s Bottom-Up Economic Transformation Agenda (BETA) for a more prosperous Kenya.
The Cabinet underscored that these measures are aimed at strengthening the nation’s socio-economic fabric, promoting inter-generational equity through improved social protection frameworks, and restore state corporations in vital sectors such as agriculture, petroleum, and energy.
A key highlight of the Cabinet’s recent session was the approval of the National Labor policy. This policy is poised to enhance Kenya’s international standing by regulating labor migration more effectively, ensuring lawful and secure overseas work opportunities for Kenyan citizens.
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The policy’s implementation is also expected to double Diaspora remittances by facilitating increased employment abroad.
