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President Uhuru Kenyatta of Kenya, and his Ugandan Counterpart Yoweri Museveni have signed a pack that will see Kenya accept sugar Imports from Uganda, and in turn export Meat and dairy Products to Uganda.
Raila Odinga the Opposition Leader in Kenya has criticized this agreement and warned that it will lead to a total collapse of the kenyan sugar Industry.
Raila is wrong on this. The kenyan Sugar Industry has been on the decline now for sometime,many say that the decline is because of cheap sugar imports. The question is, why isn’t the kenyan sugar millers improving their processes so that they are able to produce sugar at competitive prices?
In my opinion, rather than protect inefficient systems, why not provide a motivation that would cause millers to upgrade their systems so that they produce sugar at prices equal to, or better than competitors from other countries? In my opinion, another player in the market is a good motivation for the local sugar industry.