Cane farmers allocated KSh1.7bn by Government to clear arrears

Agriculture Cabinet Secretary Mithika Linturi has asked parliamentarians to issue a certificate for a debt write-off for state-owned sugar companies currently in a cash crunch.
Speaking before the National Assembly Agriculture Committee, Linturi said cane farmers are expected to benefit from the 2023/2024 Supplementary Budget through an allocation of KSh1.7 Billion to compensate farmers in Nzoia, Muhoroni, Chemelili, SONY and Miwani state-owned mills.
This allocation follows recommendations made by the Committee on Agriculture and Livestock on a Report regarding the Action Plan to Revitalize the Sugar Sector.
He reaffirmed the government’s commitment to reviving the sugar industry as he pointed out that a government bailout will not provide a long-term solution..
The government has written off 117 Billion shillings in debt, including KSh53 Billion owed to creditors by Nzoia Sugar, to revive the financially distressed companies.
In the meeting chaired by John Mutunga (Tigania West), Members of the Committee put Linturi and his delegation to the task as they reviewed the Supplementary Budget for FY 23/24.
Lawmakers’ raised pertinent questions regarding, the duplication of functions within agencies which have undertaken overlapping farmer and livestock registration initiatives in the past.
“Farmer and Livestock registration should be harmonized across all 47 counties. The Ministry needs to have a streamlined approach to data management and dissemination to avoid duplication,” Mutunga said.
The MPs also sought updates on the payment status to Small Scale Grain Millers who supplied maize during the 2022 maize subsidy programme.
Linturi assured stakeholders in the sector that his ministry would oversee the full implementation of the action plan.
“We have introduced the National Food Reserve, with an allocation of KSh2 Billion designated for the purchase of white maize to boost food security measures,” said Linturi while making his submissions during the meeting.
Committee Members further queried the fate of critical agricultural institutions such as the Agricultural Finance Corporation and the viability of donor-funded projects such as the Enable Youth Programme.
“We are seeing quite several donor-funded programmes whose viability is not clear. The Ministry must prioritize civic education on programmes meant to benefit our youth.” Nominated MP Sabina Chege posed.
Agencies