The government has taken a step towards easing down the financial burdens faced by state-owned sugar mills by writing off loans amounting to Sh117 billion, reported Nation.africa.
President William Ruto made this important announcement during his visit to Uriri and Awendo in Migori County on Sunday, where he interacted with numerous sugarcane farmers.
To reassure sugarcane farmers of their investments in sugarcane farming, President Ruto affirmed that Migori’s sugarcane growers would receive their outstanding payments. Notably, Sony Sugar, headquartered in Awendo, is indebted to farmers to the tune of Sh865 million.
The President acknowledged the formidable challenges that have plagued the sugar industry, resulting in its operational paralysis and adverse effects on the nation’s economy. He singled out struggling sugar companies such as Mumias, Chemelil, Nzoia, Muhoroni, and Sony as those he is committed to reviving.
“We will embark on a comprehensive transformation of the sugar sector. We are devising a new plan for the management of these companies and ensuring that farmers receive their due,” President Ruto asserted.
He further highlighted the staggering amount of foreign exchange being expended on sugar imports, emphasizing Kenya’s capacity to boost domestic production. “I am determined to see our sugarcane farmers earn substantial incomes through increased sugar production, leading to greater employment opportunities for our youth and the overall growth of our nation’s economy,” he stated. “To that end, our Cabinet has decided to write off the accumulated debts, which total Sh117 billion.”
