Management Politics in Kenya's Sugar Industry: Towards an Effective Policy Framework

Abstract

management, corruption and vested political interests have made Kenya's sugar industry so inefficient that the country's goal of attaining self-sufficiency in sugar production will remain unattainable for a long time. To explain the persistence of this situation, the article examines the management practice in the industry, prevailing production arrangments and the problems associated with it, focusing on the politics that pervades the entire system Introductionpaper has two objectives. The first objective is to discuss the management of Kenya's sugar industry and to shed insights into the politics surrounding the management of the industry. The second objective is to suggest a way forward in terms of an effective policy framework for the effective management of the industry. In an attempt to meet these objectives we have provided a historical background to the sugar industry in Kenya including information about the various actors involved in the industry since its inception to date. These include sugar-cane farmers and their organizations, the owners of capital, both local and international, that have invested in the industry, the managers and the state through its various institutions. The paper then examines the production structure of the sugar industry including the production arrangements and the problems associated with the production system that has been put in place. The final part of the paper suggests a way forward in terms of policy. An attempt is made throughout the paper to highlight the politics affecting the management of the sugar industry. The argument of the paper is that poor management, corruption and vested political interests have made the sugar industry so inefficient that the aim of making Kenya self-sufficient in sugar is likely to remain elusive for a long time to come. Data for this report was obtained from both secondary and primary sources.