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Kenya has been granted a nine months extension to limits on sugar imports from the regional trade bloc Comesa. This will enable the country to complete reforms that will make its sugar industry competitive, blocking the flow of cheaper sugar from other African countries.
Kenya has been granted a nine months extension to limits on sugar imports from the regional trade bloc Comesa. This will enable the country to complete reforms that will make its sugar industry competitive, blocking the flow of cheaper sugar from other African countries.
The country has been availing of the comfort for quite some time to limit imports and avoid the influx of cheap sugar from the regional trading market. This is the sixth time that the country has got the import of sugar blocked from the regional bloc.
Kenya had been expected to open up fully sugar imports from the Common Market for Eastern and Southern Africa (Comesa) States in 2014. The tariffs were scheduled to fall to zero in March 2014. But Kenya has continued to seek extensions, giving it more time for it to improve infrastructure and carry out other reforms. The cost of producing a tonne of sugar at about US$900 in western Kenya and the comparable cost is US $400 in producing countries such as Mauritius; a huge difference of US$ 500.
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The decision to block the further influx of cheap sugar was reached recently during the 43rd council of ministers meeting in Lusaka, Zambia. Trade Cabinet Secretary Moses Kuria led Kenya’s delegation. The Kenyan sugar industry has to address issues including the payment method. Comesa has recommended that it be changed from the current mode that relies on the weight of sugar cane to that based on quality or sucrose content. Comesa had framed a number of measures for Kenya to be implemented ahead of liberalisation of the market.
