The structure and performance of Kenya's Sugar Industry(with Special Emphasis on the Nyanza Sugar Belt)

Abstract

The study descrihes the organizational structure of the sugar industry in Kenya and hm the existing structure affects perfonnance at farm, factory and consurrer levels. The study was conducted mainly in the Nyanza Sugar Belt and examines, the problerrs of cane procurement and excess capacity. The analysis reveals that the: excess capacity problem is a common phenorrenonin virtually all the Five Sugar factories in Kenya and that this problem originates from inadequate cane supply to the factories. At farm level, the out-growers in the Nyanza Sugar Belt

are faced with many organizational, technological and socio- economic problerrs which result in poor performanceand hence tend to kill famers' incentives in cane production. lack of famer- processor integration, inadequate machinery and transport services, inadequate credit facilities, and problems of extension services and cooperative movements are sorre of the factors contributing

to low perfomance at farm levels in most of the factory zones, with the exception of Mumias.

The study concl.udes by recomrending structural re-- " ~1 orgsni.zetirn in cane proiiuctim to step up cane output at farm levels, by encouraging famers to irilprove their cane husbandry . techniques. It is further.. recomrended -me.t IIDre formal links should -4 be set up between the fa.~ories and the farmers to ensure that the '~ factories receive aCeq~e cane supply, and that they :ill tUl~"- crovi.oe ! inputs or services to enable fa.:rners toirilprove their yields . .~: