Sugarcane farmers to obtain bonuses amid trade reforms | Meals Enterprise Africa

KENYA – Kenyan sugarcane farmers are set to start receiving bonuses for his or her produce beginning this yr as a part of the reforms promised by the federal government.  

President William Ruto introduced the bonus plan, emphasizing that the federal government has streamlined operations at Mumias Sugar Firm to make sure farmers profit from their onerous work. 

Talking on the brand new initiative, President Ruto acknowledged, “We need to present management that may pay sugarcane farmers on time, pay the correct costs, pay the employees, and be capable to pay bonuses to farmers. It’s time we alter the best way we do enterprise to learn farmers as an alternative of importers.” 

Nevertheless, the Nationwide Federation of Sugarcane Farmers (NFSF) has expressed considerations concerning the implementation of the bonus scheme.  

Simon Wesechere, Deputy Secretary Common of the federation, urged the federal government to make clear the standards and authorized framework that will probably be used to manage the bonuses, noting that such provisions will not be at present included within the present Sugar Act or laws. 

Wesechere additionally referred to as on the federal government to expedite the modification of the long-pending Sugar Invoice 2019 to incorporate a bonus clause, emphasizing that with out authorized backing, the President’s announcement might lack substance.  

“The President ought to push for an modification within the Invoice that has overstayed within the corridors of Parliament since 2018 to introduce the bonus clause. Till then, all he’s telling us is nothing however sizzling air,” Wesechere remarked. 

The President’s announcement comes at a time when sugarcane farmers are voicing their considerations over a current drop in cane costs.  

The Agriculture and Meals Authority (AFA) reported a surge in home sugar manufacturing in the course of the first half of 2024, reaching 485,802 tonnes by the tip of August.  

This enhance in manufacturing has led to a big drop in sugar costs, with the price of a 50kg bag of sugar falling from KES 9,500 (US$73.65) in December 2023 to KES 5,128 (US$39.76). 

Cane costs have equally decreased from KES 6,050 (US$46.91) per tonne to KES 4,950 (US$38.38).  

The Kenya Sugarcane Growers Affiliation attributes this decline to an inflow of imported sugar and has referred to as for the suspension of duty-free imports to stabilize native sugar costs and shield home farmers.