Sugar mills in Kenya may face strong competition from Uganda sugar following bilateral talks aimed at tripling the import quantities of the sugar.
Kenya can triple sugar imports from Uganda. On the other hand, Sugar mills in Kenya claiming that they are facing huge losses due to the cheap imports from other countries.
Earlier in the month of March, after holding talks with Uhuru Kenyatta, President of Kenya, Ugandan President Yoweri Museveni said that Kenya has agreed to increase sugar imports from Uganda from 30,000 tonnes to 90,000 tonnes annually. However, the plans did not take off as planned following delays in issuing the licences.
Both the leaders met late last month again on the sidelines of TICAD conference in Japan where Kenyatta agreed to follow up on the matter to ensure the deal is being implemented.
Millers in Kenya claim that some countries are exporting cheap sugar which has hampered the domestic sugar sector and says that prices have dropped drastically from Sh.4, 500 to Sh.3, 800 per 50Kg bag. Addressing the press conference Muhoroni Receiver Manager, Francis Ooko expressed fear that if the situation persists then debt-ridden millers can be in a deeper crisis.
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