Following closure of main local sugar millers, Court of Appeal has overturned decision by High Court to license operations at the Butali Sugar Mills, Kakamega. Court of Appeal made this decision after discovering that Kenya Sugar Board violated procedures in granting Butali license to operate.
Meanwhile, Kenya plans to import sugar from only 12 firms most from Uganda and Zambia. This is in an effort to deal with the rising shortfall of sugar supply.
Though the government is in support of the importation of sugar, a local Member of Parliament (MP) has moved to court to block cheap sugar importation from countries which are non-members of COMESA.
The MP supports that local sugar millers have more than 51,000 metric tonnes of sugar in their stores and importing sugar will have adverse effects to farmers and local millers.
Kenya ‘s sugar industry produces about KES 2 billion annually ,provides 500,000 jobs and supports six million people.