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Sale of five State sugar millers set to kick off Thursday

bett

Agriculture secretary Willy Bett. FILE PHOTO | NMG

Plans to sell State-owned sugar millers has kicked off with officials expected to meet governors and other key stakeholders today to fast-track the process.

Agriculture secretary Willy Bett says government is moving with speed to ensure the process is completed as soon as possible.

This comes hardly a week after the High Court set aside injunction obtained by governors stopping the sale of the five millers, saying they had not been consulted.

“We are meeting county officials, millers and other key stakeholders on Thursday in Kisumu to discuss the way forward on privatisation of these state-owned millers,” said Mr Bett on Tuesday.

The government plans to sell 51 per cent stake in Sony, Chemelil, Nzoia, Muhoroni and Miwani to strategic investors and reserve 24 per cent share for farmers and employees.

The government will then dispose of the remaining 25 per cent stake through an initial public offering once the factories are profitable.

This is aimed at injecting new capital into the debt-laden millers and return them to profitability.

READ: Sale of State sugar firms on after suit flops

The sale is one of the conditions issued to Kenya by the Common Market for Eastern and Southern Africa (Comesa) when restricting shipments into the country from regional states.

Kenya has been seeking extension of the safeguards as it continues to address constraints ahead of opening up.

Arguing its case while seeking another extension last year, Kenya told Comesa Council of Ministers that the process of selling the millers stalled due to the court case.

The council gave the country two more years with Kenya required to provide reports every year on the status of its sugar sector until 2018 when the safeguards expire.