COmmentratry by Leo Odera Omolo
It is very encouraging that the government of Kenya has declared its reform exercise of its parastatals and other loss making – quasi-government organizations. However the inefficient and perennial loss making Kenya Sugar Board should be scrapped and axed and another vibrant body be established to perform the KSB duties.
The board was created by an act of parliament a few years ago to look after the sugar s-sub sector. At the time of its inception the performance of the industry was well, but gradually this got derailed such that it is not effective in making what used to be a robust industry almost totally collapsed.
The reasons for the decay in this important dub-sector include {1} Composition of a new board that include farmer representative elected more or less along a line similar to that of electing ward representatives to the regional assemblies. At the present electoral system, it is doubted if the farmers have got adequate and effective representation for improvement of their lot.
{2} The current Kenya Sugar Board has failed to achieve equity in financial returns from three tire industry. To – date there is no operating sugar cane payment formula and the poor farmers are so disadvantaged, especially when they have ineffective representation.
The sugar industry in this country could borrow a leaf from Mauritius or South Africa. In the Indian Ocean island of Mautirius, after all made sugar has been sold, about 75-76 per cent of the proceeds are given to the raw cane owners and 24-25 per cent shared by other stakeholders. In this way availability of raw material, cane is assured and there is equity.
As regards COMESA rule, total production of sugar in COMESA countries put together is far less than total consumption in the same region. He Sugar board has not addressed importation of sugar from Comesa countries, which are well known to produce much less than their domestic consumption.
In general, operation of the sugar regulating board should be devolved and placed under County Agriculture docket for close supervision.
In general, operations of the KSB should be devolved and made to fall under County. It is worth noting that this institution has changed names many times. Good agricultural work appear to be conducted in this institution. Effective extension programs need to be created to disseminate research findings to improve the industry. The institution, however should encompass work related to sugar factory as is done in the other sugar research institutions in Mauritius. Research should go to factory level as well. Composition of the board should include people with relevant professional experience, and strictly not seconded civil servants. All the parastatal sugar factories in this country have been run-down. From that time appointments of CEOs had little bearing on professional suitability. Selection criteria of CEOs must be reviewed. The same should go for departmental heads.
Ends