Kenya Pushes Ahead With Leasing Public Sugar Companies
By Keefa Nuwahereza
The government
of Kenya has embarked on a campaign to offer 25-year leases on five loss-making
sugar mills in western Kenya
This was
after authorities observing that privately owned sugar companies have steadily
increased their market share over the last decade
It should be
noted that nationalisation is only justified if an industry is a monopoly which
could be abused by a private operator seeking super-profits. Occasionally it
may be necessary in the national interest to rescue a strategic company such as
Kenya Airways.
The state
should not get involved in an industry where the private sector operates
efficiently and profitably.
Three weeks
ago the government asked for bids to lease five state-owned sugar
mills—Chemelil, Miwani, Muhoroni, Nzoia and Sout...