Western, Nyanza MPs call for 16pc tax on imported sugar
Eric Juma
Four legislators have asked the State to extend the 16 per cent tax on imported milk policy to the sugar sector and inject resources towards revival of the collapsing sugar factories in Nyanza and Western regions.
Elisha Odhiambo (Gem), Oburu Oginga (EALA), Ayub Savula (Lugari) and Raphael Wanjala (Budalang’i) asked President Uhuru Kenyatta to redeem the dwindling sugar sector.
Speaking separately last weekend, the leaders lauded the President’s directive, saying the Jubilee government was now responding to the needs of its citizens.
“I am impressed by the directive of the President to impose 16 per cent of tax on imported milk from outside EAC countries as this will see local farmers reap big,” said Odhiambo during an interview with People Daily on Saturday in Gem.
Meet demands
On Tuesday last week, the President directed the Treasury to impose a 16 per cent tax on milk products from outside the bloc and ordered the Kenya Bureau of Standards and police to crack down on counterfeits.
There have been concerns that milk products, suspected to be imported from Europe, find their way into Kenya through Uganda.
The MPs claimed Kenya has been importing sugar to meet local demand as local millers such as the giant Mumias Sugar Company face hurdles.
Not only has the company been unable to pay farmers their dues, it is also struggling with a huge debt burden occasioned by mismanagement.
“Cartels, which are largely responsible for the death of the sugar industry in Kenya have taken advantage of privatisation to flood the market with cheap sugar imports whose impact has driven local production under,” said Odhiambo.
The leaders backed the Lake Region Economic Bloc (LREB) governors push to have the State revive the sugar and cotton sectors that drives Nyanza and Western regions economy.
During the closing of LREB meeting in Siaya on Friday, the governors faulted the National government for frustrating the revival of sugar sector in Western and Nyanza region.
“It’s so sad that since August 2019, we have been waiting in vain for the then Agriculture minister to table sugar taskforce report for discussion at the Cabinet level,” said Kisumu Governor Anyang’ Nyong’o.
He said among the things in the reports that would see the sector thrive include re-introducing the sugar development levy, sugar board and zoning of Sugar belts but since August upto date the cabinet has not yet formulates any policy to drive revival of the sugar sector.
He asked the new cabinet secretary Peter Munya to get the report from the shelves and act on it to relieve the suffering sugarcane farmers in Nyanza and Western region.
Nyongo also vouched for growth for cotton in Nyanza, saying it was rewarding more than sugarcane.
