BY MANUEL ODENY

President William Ruto has given KSh150 million bonus for sugar farmers who have supplied cane to Kakamega’s Mumias Sugar Factory, the first such payment in the sector.

The President said the historic bonus payment to farmers not only validates the success of the reforms introduced in the sugar sector, but is also evidence of the potential to uplift farmers and support tens of thousands of livelihoods.

“With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attaining surplus production and commence regional exports by 2026, turning sugarcane cultivation into a viable and rewarding venture,” he said.

Speaking during the launch of the bonus payments, President Ruto pointed out that the reforms carried out in the sugar industry have yielded significant results.

He pointed out that the writing off of KSh117 billion in debts, including the payment of KSh1.7 billion in farmers’ arrears and KSh650 million owed to employees, was part of the effort to revive the sector.

In line with other measures outlined in the 2019 Sugar Taskforce, President Ruto said he had assented to the Sugar Act 2024 that establishes sugarcane catchment areas to better manage supply, synchronise milling operations and improve efficiency.

“We have asked the new Cabinet Secretary for Agriculture Mutahi Kagwe, who is here with us today, to finalise regulations to operationalise the Sugar Act to provide clarity and get rid of cartels in the sector,” he said.

The President said the government is also distributing subsidised fertiliser to enhance productivity and increase farmers’ income.

“Last year, we produced a record 832,000 metric tonnes of sugar, and we anticipate that production will continue growing. By 2026, Kenya should be a surplus producer of sugar and begin exporting to the regional market,” said President Ruto.

He said the bonus payment would have a substantial impact on the growth of the sugar sector, which is a key target for Kenya’s export plans.

“To support this, 50 per cent of the annual rent paid to the bank will be distributed as a bonus to farmers on a pro-rata basis, depending on the quantity of sugarcane each farmer supplies to the miller,” President Ruto explained.

The President said this will ensure fairness and transparency, and will be adjusted appropriately on the basis of the company’s performance.

He pointed out that the model can be replicated in other publicly-owned sugar companies once they are leased, and the board will conduct a comprehensive study to develop a robust system of giving incentives to farmers.

“Additionally, Cane Testing Units will be utilised to ensure farmers receive additional payments based on the quality of their cane along with the payments based on weight,” he said.

The President asked Mr Kagwe to increase subsidised fertiliser for sugarcane farmers from 700,000 bags last year to one million bags this year.

He said it was encouraging that farmers who supply cane to Mumias Sugar Company are being paid within seven days.