Can the Sugar Act 2024 revive Kenya’s flagging sugar sector?

Can the Sugar Act 2024 revive Kenya’s flagging sugar sector?

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The sugar trade, as soon as a cornerstone of the nationwide economic system, has been in decline for years, leaving smallholder farmers grappling with monetary uncertainty.

However, the introduction of the Sugar Act 2024 marks a pivotal second in efforts to rejuvenate the sector and tackle its systemic challenges.

The new laws, which largely mirrors the repealed Sugar Act of 2001, introduces key reforms geared toward reworking the trade. Among essentially the most vital modifications is the discount of farmer administrators on the Sugar Board from seven to 5, a transfer that displays the rising affect of personal millers in a sector that has undergone vital growth.

According to Michael Arum, a coordinator with the Sugar Campaign for Change (SUCAM), the sector has developed dramatically since 2001. “Back then, the industry was dominated by only two private mills. Today, there are eleven operational mills, most of them privately owned,” Arum famous. This shift alerts a broader development within the trade, with energy more and more tilting from authorities management to personal sector dominance.

In the early 2000s, the federal government performed a central function within the trade, proudly owning 4 operational mills and holding a big stake in Mumias Sugar, which as soon as accounted for practically half of Kenya’s sugar manufacturing. Over time, nonetheless, state-run mills have struggled, and the federal government’s affect has waned. Arum pointed to Mumias Sugar as a living proof: “Once the industry leader, Mumias is now in financial distress. The government is even considering leasing its assets to private investors to revive operations.”

While the expansion of personal millers has injected much-needed dynamism into the sector, it has additionally introduced new challenges. Stronger oversight is now important to guard farmers’ pursuits and preserve equity in an more and more aggressive surroundings. Arum expressed considerations concerning the discount in farmer illustration on the Sugar Board, arguing that this transformation may marginalize smallholder farmers, who stay the spine of the trade. “The reduction in farmer representatives raises serious concerns about the diminishing influence of smallholder farmers in key decision-making processes,” he mentioned.

Arum burdened the significance of making certain that smallholder farmers aren’t sidelined as personal millers achieve extra energy. “Farmers are the lifeblood of this industry. Without their active participation in the Sugar Board, we risk creating an industry that benefits a few large millers while leaving the majority of smallholder farmers behind,” he warned. SUCAM and different farmer advocacy teams have referred to as on the federal government to safeguard farmers’ pursuits and guarantee they’ve a voice in choices that have an effect on their livelihoods.

One of essentially the most urgent wants underneath the brand new Sugar Act 2024 is the formation of a unified farmer apex physique. Arum emphasised that this physique would function a central platform for smallholder farmers to advocate for his or her rights and pursuits on the nationwide stage. “We need a strong, unified front to push for fair pricing, better working conditions, and greater support from both the government and private millers,” he mentioned. He additionally identified {that a} fragmented farmer group has lengthy been a barrier to attaining honest illustration, leaving smallholder farmers susceptible to divide-and-rule techniques by some personal millers.

The institution of this apex physique is seen as a important step towards strengthening farmers’ collective voice and making certain their considerations are addressed. “With a unified front, farmers will be in a better position to negotiate and advocate for policies that support their needs,” Arum mentioned.

While the Sugar Act 2024 is a crucial milestone, its success will hinge on efficient implementation and sustained authorities oversight. Arum urged the federal government to stay vigilant in making certain that the advantages of the sugar trade are equitably shared. “The reforms are a step in the right direction, but they must be accompanied by strong oversight mechanisms to prevent exploitation and ensure fairness,” he mentioned.

Looking forward, the way forward for Kenya’s sugar trade holds promise if the pursuits of smallholder farmers stay a precedence. Sugar Board CEO Jude Chesire has additionally emphasised the necessity for an inclusive and aggressive surroundings to drive sustainable development. By fostering insurance policies that defend farmers and selling equitable practices, Kenya’s sugar sector can reclaim its place as an important contributor to the nationwide economic system, providing prosperity and stability for all stakeholders.