Kenya's Cabinet has approved the write-off of debts owed by public sugar mills, totaling 117 billion Kenyan shillings ($785.2 million). This significant move, following parliamentary approval, is part of the government's efforts to revitalize the country's sugar sector. The National Treasury is working to waive tax penalties and interest within thirty days, and plans are in place to settle arrears owed to farmers and employees within three months. Of the total debt, $436 million is owed to banks, $335.4 million in taxes, and nearly $13.4 million in unpaid dues to farmers. The Cabinet's decision to clear these debts is a pivotal step in rejuvenating the struggling sugar industry.
Additionally, the Cabinet has approved the publication of requests for proposals to lease five state-owned sugar mills, aiming to enhance the sector's efficiency and competitiveness. The efforts of governors representing counties within the Lake Region Economic Bloc have further highlighted the determination to revitalize the sugar industry, including the potential separation of the sugar sector from the oversight of the Agricultural Food Authority. These combined initiatives and the lifting of the milling ban by the Agriculture and Food Authority are expected to contribute to the normalization of sugar production in Kenya.