Agriculture Cabinet Secretary Peter Munya has unilaterally banned sugar imports into Kenya in order to create a coercive monopoly for notorious sugar baron Jaswant Rai, Kenyan News Day can independently confirm.
Munya who on Thursday announced a raft of sugar reforms and government directives on the importation of sugar and cane is currently in a promiscuous relationship with multi-billionaire industrialist Rai who has coerced the minister to ban sugar imports to stifle market competition.
An on-going investigation by Kenyan News Day revealed businessman Rai was using the minister to arm-twist the Sugar Directorate of the Agriculture and Food Agency to push out other small scale importers so he can enjoy dominance in both milling and importation.
The reports on the ban on sugar imports vindicate our Kenyan News Day exclusive exposè two months ago when we reported how the state intelligence had raised red flags on Munya after he severally hosted sugar baron Jaswant Rai at his Kilimo House office and met him privately at one of Nairobi’s high end hotels.
NIS raises red flags on Munya after CS is ensared by sugar baron Jaswant Rai
It is believed the minister has received a substantial kickback from Rai who has understandably also promised to finance Munya’s 2022 gubernatorial campaign in Meru.
As Kenya’s foremost miller through his three private sugar factories; West Kenya, Olepito, and Sukari Industries, controls approximately half of the sugar produced locally, billionaire Rai stands to increase his already substantive market control of Kenya’s lucrative market with Munya’s ban because of the envisaged shortage which will push up domestic retail prices for him.
It is instructive to note Rai is in court with both Butali and Busia sugar mills who he had demanded that their licences be revoked so as to leave his three factories as the only major operator in Kenya.
As Munya unilaterally and illegally suspended sugar import trading licences, he was deliberately setting stage for Rai to domineer the local sugar market and set prices as he wishes due to lack of competition.
Most of the public sugar companies which Munya used to effect the ban have been performing dismally due to lack of sufficient capital, ageing machinery, mismanagement and political interference. Once a market leader in the region, Mumias Sugar is virtually on its deathbed producing no sugar at all.
Munya’s move to ban sugar imports was purportedly meant to curb the influx of cheap sugar in the market and protect farmer, but in reality industry observers say he was giving a blank cheque to a cartel kingpin with the result expect to be high sugar consumer prices in retail stores.
In protecting his vested interest, CS Munya misled journalists when he stated that sugar imports have rendered local mills uncompetitive because of their cheap nature. The truth is Kenya has to import at least 350,000 tonnes every year to meet its total consumption needs because local mills are unable to meet demand.
Sources from Kenya Revenue Authority also told Kenyan News Day that the influx sugar smuggling through Busia border was being coordinated by unscrupulous businessmen with links to Rai’s sugar cartel and organized crime.
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