The government has waived Sh117 billion owed to it by state-owned sugar millers in preapration fo rleasing them out to private entrepreneurs.
In the Monday meeting at State Lodge Kisumu, President William Ruto announced the resolution of both Houses of Parliament on the reforms to turn around of the sugar sector.
Additionally, the National Treasury is working on waiving tax penalties and interest within 30 days. Plans for the payment of farmers’ arrears and employees’ salary arrears will also be unveiled within three months.
The sugar companies owe the money in banks loans, tax arrears and penalties, farmers and employees’ dues. Specifically, the millers owe banks Sh65 billion, Sh50 billion in taxes and nearly Sh2 billion in farmers’ dues.
Meanwhile, requests for proposals for the leasing of the five State-owned sugar mills will be published in a fortnight.