Africa-Press – Kenya. Kisumu Governor Anyang’ Nyong’o has dismissed reports that he is at odds with former Prime Minister Raila Odinga over the proposed leasing of public sugar factories.
Nyong’o termed the reports as untrue, stating that he is fully aligned with the ODM leader on the issue.
“Our shared position is clear. The government must exit the management of these factories and instead lease them to private investors through a competitive and transparent process,” he affirmed.
In a statement, Nyong’o however insisted that the transition must be carried out with the full involvement and support of farmers, workers, and county governments to ensure its success and sustainability.
The government has finalised a 30-year lease agreement handing over the operation of four major state-owned sugar mills to private millers.
The move is expected to usher in a new era of efficiency, increased productivity and financial sustainability in a sector long plagued by debt and mismanagement.
Under the new arrangements West Kenya Sugar Company will take over Nzoia Sugar Company; Kibos Sugar and Allied Industries Ltd will manage Chemelil Sugar Company; Busia Sugar Industry will operate Sony Sugar Company and West Valley Sugar Company Ltd will lease Muhoroni Sugar Company.
Speaking on Thursday after meeting Agriculture Cabinet Secretary Mutahi Kagwe, Raila expressed support for the government’s plan to lease sugar companies to private investors.
He said leasing the sugar millers is necessary for economic growth.
The two had met to discuss how the agricultural sector would be revived.
The discussions also included the ongoing plans to lease sugar companies to private investors.
However, reports had indicated that Nyong’o wanted an immediate suspension of the ongoing leasing process in Kisumu county, fearing it was a threat to community livelihoods, land rights and social cohesion in the sugar belt.
He is reported to have raised alarm over a “rushed and opaque” privatisation of Chemelil and Muhoroni Sugar factories, warning it could plunge the region back into rural poverty, trigger land grabs and stoke ethnic tensions.
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