The Government has secured extension of the sugar safeguard that was due to expire in February 2016 for an additional one year up to February, 2017, which gives Kenya more time to streamline the ailing industry.
The extension will operate on the basis of the terms and conditions set out in Directive No. 1 of 2007. These included privatizing state owned mills, doing research into new early maturing and high sucrose content sugar cane varieties and adopting them, paying farmers on the basis of sucrose content instead of based on weight, maintaining the safeguard as a tariff rate quota with the quota increasing while the above quota tariff falls until it reaches 0%. Further, it also includes maintaining and providing infrastructure including roads and bridges in the sugar growing areas.
The COMESA Policy Organs meetings are taking place in Lusaka, Zambia, where Kenya is represented by Cabinet Secretary Adan Mohamed as the Minister responsible for International Trade covering COMESA.
Kenyan has secured the extension that will give interim comfort to the sugar sector in the country it gears up for increased investments in the sector and with the privatization process underway.
Photo Courtesy of Standard Media