Kenya: Board Warns of Sugar Shortage
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The Nation (Nairobi)
26 August 2008
Posted to the web 27 August 2008
Abdulsamad Ali
Nairobi
The Kenya Sugar Board (KSB) has warned of a sugar crisis in the country unless consignments held at Mombasa port are released to the market.
KSB said the country's sugar millers had "very low" stocks, a situation it said was potentially disastrous.
But Mumias Sugar Company managing director Evans Kidero, who is also the chairman of the Kenya Sugar Millers' Association, denied that stocks being held by millers were on the verge of depletion.
"I am reading mischief in all this and I think that those behind the letter are rooting for illegal sugar imports," said Dr Kidero, adding that millers had enough stocks to meet all the requirements of the consumers.
He dismissed the letter by the acting KSB chief executive officer, Ms R. Mkok, as "mischievous". He claimed that the letter was meant to allow illegal imports into the market.
"I have just spoken with the several millers and have been assured that there is enough sugar in the stores. For example, Muhoroni have 44,000 bags, Kibos have 22,000 while Mumias has 17,000 bags in its warehouse in Mombasa," he said.
According to KSB, sugar millers had low stocks of 3,336 tonnes, which would translate into about two days national requirements, while the sugar being held at the port was 8,449 tonnes.
The sugar being held was occasioned by new directives by Agriculture minister William Ruto banning sugar importation until new measures were put in place.
Queried legality
The proposed measures, however, have not been gazetted after the Common Market for Eastern and Southern Africa (Comesa) queried their legality.
The measures, which sought to auction the annual Comesa quota and make KSB approve every individual consignment, were said to be prohibited under Article 49 of the Comesa Treaty.
Sources, however, say that the minister softened his stance but some senior ministry officials are adamant. The result has been indecision and a sugar market without regulation.
Relevant Links
Soon after the minister announced the measures to regulate sugar importation, KSB issued a public notice on July 25 to all importers asking them to declare their consignments for immediate release.
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