State-owned sugar millers have been exempted from government plans to privatise loss-making institutions.
President William Ruto said the government was committed to reviving the struggling sugar industry even as he urged MPs to hasten the amendment to the law allowing the writing off of Sh117 billion debts accrued by the millers.
“Don’t expect to hear that some Asians are buying your companies. You will not hear of Rai,” he said in reference to sugar mogul Jaswant Sign Rai who was allegedly abducted by unknown people last week.
“I want you to know that it will not be privatised, land will remain property to Kenyans but we will plan to ensure it benefits Kenyans.
We have spent more than Sh4 billion that goes into the drain but this time we want to do it differently,” Ruto said.
“Our five sugar companies have debts of more than Sh60 billion which needs to be written off. We will take it to MPs to do a complete write-off because previously they did half of it,” Ruto said.
“The initial plan to privatise state-owned millers will not happen, we will not let our companies continue sinking into more debts. It’s now up to our MPs to approve the waiver on the debts owed by sugar companies,” Ruto said.
“The initial plan to privatise state-owned millers will not happen, we will not let our companies continue sinking into more debts. It’s now up to our MPs to approve the waiver on the debts owed by sugar companies,” Ruto said.
The exchequer has already written to Parliament seeking the approval to write off loans owed to the government and the Kenya Sugar Board amounting to Sh65.8 billion, and tax penalties amounting to Sh50.14 billion.
