Technical Efficiency in Sugar Processing

Abstract

The structural adjustment programs (SAPs) have been operational in Kenya from early 1980's. With their market-determined prices, they are supposed to address prevalent economic distortions and inefficiency in various sectors of the economy. In agricultural sector. most reforms became operational in 1990's with the sugar sub-sector reforms introduced in 1992. This study. therefore. aims at examining how far these SAPs have addressed inefficiency in sugar processing. It majors on technical efficiency and Mumias Sugar Company has been chosen as a case study, in the processing industry. It covers the period 1980-2000. with the SAPs period lying between 1993-2000. Technical efficiency of the period 1980-1992 is compared with that of the -period 1993-2000 to determine whether it increased or declined and if so by what percentage.