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Sugar Crackdown- What exactly is going on?
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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AlphDoti wrote:Njunge wrote:FRM2011 wrote:Would you want to say anything about the business connections of this Rai guy with the first family. Or its too hot to handle.
By the way, Uhuru appointed the guy to Kenya Forestry Service board. I will...on condition you prove all your friends and business partners are angels. Of course "we" cannot talk about that... It is betrayal.  So, we are not complaining because what the sugar/mercury barons are doing is bad but because we lack the opportunity to do the same? If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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murchr wrote:AlphDoti wrote:@njung'e have you thought maybe this RAI guy works for the big fish including the one you cannot talk about?  Rai has been a bigshot since I can remember. Raiply. Rai group of companies. Well known muhindi but somewhat down to earth. Down to earth yet he is the only one doing the highest level of deforestation in Kenya. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 1/25/2012 Posts: 1,624 Location: Langley
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Angelica _ann wrote:murchr wrote:AlphDoti wrote:@njung'e have you thought maybe this RAI guy works for the big fish including the one you cannot talk about? Rai has been a bigshot since I can remember. Raiply. Rai group of companies. Well known muhindi but somewhat down to earth. Down to earth yet he is the only one doing the highest level of deforestation in Kenya. Deforestation is another way of being down to earth...i mean you bring trees down to the ground (earth). If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.
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Rank: Elder Joined: 2/7/2007 Posts: 921
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Mastermind wrote:Angelica _ann wrote:murchr wrote:AlphDoti wrote:@njung'e have you thought maybe this RAI guy works for the big fish including the one you cannot talk about? Rai has been a bigshot since I can remember. Raiply. Rai group of companies. Well known muhindi but somewhat down to earth. Down to earth yet he is the only one doing the highest level of deforestation in Kenya. Deforestation is another way of being down to earth...i mean you bring trees down to the ground (earth). ......wacha jokes ero!!
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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The most important thing that this scandal has unearthed, is that Kenia's sugar industry was killed, to pave way for the importation of WASTE sugar. We were brought waste sugar, bought for peanuts, sold the same at exorbitant prices, as our farmers suffered. In addition, poverty, death and Cancer cases, have increased exponentially because of the same.
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Rank: Elder Joined: 7/22/2008 Posts: 2,723
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I do not know why people are surprised. Sugar has for the longest time been a cash cow for politicians.
This is where the genesis of the problem is: Kenyan sugar producers are some of the most inefficient in the world. Sugar produced at Mumias and other Kenyan sugar factories has for years hit the market at at least more than 100% the global price of sugar. Anybody can get a big ship and go to Brazil and pack the whole ship with sugar and then sail to Mombasa.......... the cost of hiring the ship and buying the sugar at market price and bringing it to Mombasa is less than half of what the sugar sells for in the Kenyan market. The only problem why not every one can do this is that there is a restriction on amount and who can bring in the sugar.
I may be wrong about the details here but in general this is how it is designed to work; the sugar board or someone determines what the production of sugar by the Kenyan sugar companies is let us say that is 500,000 tonnes. Then they determine what the consumption of sugar is, lets say that is 900,000 tonnes. So here is the where the money is, they determine that there is a shortfall of 400,000 tonnes and this shortfall should be filled by importation DUTY FREE. That is 400 million kilograms of sugar. I do not know how things work out now but in the past the minister of Agriculture was responsible for issuing the license for the importation of this shortfall....... Just think about that for a second..... one minister had the power to issue a license to one or several people to bring in 400 million kilos of sugar duty free. The profit per kilo of sugar even in the worst of times was more than 10 shillings a kilo but let us assume for purposes of argument it is 10 shillings a kilo. So there is 4 billion shillings to be made without any effort if only you can get the license....now ask yourself, how much is that license worth to you as a businessman?
This is why the Ministry of Agriculture was one of the most lucrative ministries to hold in government. This was the practice going back to Moi days. Someone should do a documentary of all people who ever held the position of Minister of Agriculture. So what used to happen is that whenever a new minister of Agriculture was appointed he would go to the office to find a line of sugar barons waiting for him with briefcases of cash... more cash than he had ever seen in his life in exchange for a very simple signature on a piece of paper.
Ever heard of a certain former very vocal government critic who was at one time an MP for Cherangany? He became Minister of Agriculture for a short period of time in Kibaki era and in a short time built a very huge mansion in Karen. Sugar has always been dirty.
Maybe someone else here can also tell the story of Kuria Kanyingi and a certain parastatal that had the monopoly of buying sugar from the millers and distributing all over the country.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Kusadikika wrote:I do not know why people are surprised. Sugar has for the longest time been a cash cow for politicians.
This is where the genesis of the problem is: Kenyan sugar producers are some of the most inefficient in the world. Sugar produced at Mumias and other Kenyan sugar factories has for years hit the market at at least more than 100% the global price of sugar. Anybody can get a big ship and go to Brazil and pack the whole ship with sugar and then sail to Mombasa.......... the cost of hiring the ship and buying the sugar at market price and bringing it to Mombasa is less than half of what the sugar sells for in the Kenyan market. The only problem why not every one can do this is that there is a restriction on amount and who can bring in the sugar.
I may be wrong about the details here but in general this is how it is designed to work; the sugar board or someone determines what the production of sugar by the Kenyan sugar companies is let us say that is 500,000 tonnes. Then they determine what the consumption of sugar is, lets say that is 900,000 tonnes. So here is the where the money is, they determine that there is a shortfall of 400,000 tonnes and this shortfall should be filled by importation DUTY FREE. That is 400 million kilograms of sugar. I do not know how things work out now but in the past the minister of Agriculture was responsible for issuing the license for the importation of this shortfall....... Just think about that for a second..... one minister had the power to issue a license to one or several people to bring in 400 million kilos of sugar duty free. The profit per kilo of sugar even in the worst of times was more than 10 shillings a kilo but let us assume for purposes of argument it is 10 shillings a kilo. So there is 4 billion shillings to be made without any effort if only you can get the license....now ask yourself, how much is that license worth to you as a businessman?
This is why the Ministry of Agriculture was one of the most lucrative ministries to hold in government. This was the practice going back to Moi days. Someone should do a documentary of all people who ever held the position of Minister of Agriculture. So what used to happen is that whenever a new minister of Agriculture was appointed he would go to the office to find a line of sugar barons waiting for him with briefcases of cash... more cash than he had ever seen in his life in exchange for a very simple signature on a piece of paper.
Ever heard of a certain former very vocal government critic who was at one time an MP for Cherangany? He became Minister of Agriculture for a short period of time in Kibaki era and in a short time built a very huge mansion in Karen. Sugar has always been dirty.
Maybe someone else here can also tell the story of Kuria Kanyingi and a certain parastatal that had the monopoly of buying sugar from the millers and distributing all over the country. Kipruto Rono Arap Kirwa???  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 12/7/2012 Posts: 11,937
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Impunity wrote:Kusadikika wrote:I do not know why people are surprised. Sugar has for the longest time been a cash cow for politicians.
This is where the genesis of the problem is: Kenyan sugar producers are some of the most inefficient in the world. Sugar produced at Mumias and other Kenyan sugar factories has for years hit the market at at least more than 100% the global price of sugar. Anybody can get a big ship and go to Brazil and pack the whole ship with sugar and then sail to Mombasa.......... the cost of hiring the ship and buying the sugar at market price and bringing it to Mombasa is less than half of what the sugar sells for in the Kenyan market. The only problem why not every one can do this is that there is a restriction on amount and who can bring in the sugar.
I may be wrong about the details here but in general this is how it is designed to work; the sugar board or someone determines what the production of sugar by the Kenyan sugar companies is let us say that is 500,000 tonnes. Then they determine what the consumption of sugar is, lets say that is 900,000 tonnes. So here is the where the money is, they determine that there is a shortfall of 400,000 tonnes and this shortfall should be filled by importation DUTY FREE. That is 400 million kilograms of sugar. I do not know how things work out now but in the past the minister of Agriculture was responsible for issuing the license for the importation of this shortfall....... Just think about that for a second..... one minister had the power to issue a license to one or several people to bring in 400 million kilos of sugar duty free. The profit per kilo of sugar even in the worst of times was more than 10 shillings a kilo but let us assume for purposes of argument it is 10 shillings a kilo. So there is 4 billion shillings to be made without any effort if only you can get the license....now ask yourself, how much is that license worth to you as a businessman?
This is why the Ministry of Agriculture was one of the most lucrative ministries to hold in government. This was the practice going back to Moi days. Someone should do a documentary of all people who ever held the position of Minister of Agriculture. So what used to happen is that whenever a new minister of Agriculture was appointed he would go to the office to find a line of sugar barons waiting for him with briefcases of cash... more cash than he had ever seen in his life in exchange for a very simple signature on a piece of paper.
Ever heard of a certain former very vocal government critic who was at one time an MP for Cherangany? He became Minister of Agriculture for a short period of time in Kibaki era and in a short time built a very huge mansion in Karen. Sugar has always been dirty.
Maybe someone else here can also tell the story of Kuria Kanyingi and a certain parastatal that had the monopoly of buying sugar from the millers and distributing all over the country. Kipruto Rono Arap Kirwa??? One of the 'experts' in morning TV shows. Now you know how In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 10/4/2006 Posts: 13,823 Location: Nairobi
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Mukiri wrote:The most important thing that this scandal has unearthed, is that Kenia's sugar industry was killed, to pave way for the importation of WASTE sugar.
We were brought waste sugar, bought for peanuts, sold the same at exorbitant prices, as our farmers suffered.
In addition, poverty, death and Cancer cases, have increased exponentially because of the same. What is "WASTE" sugar? All Mushrooms are edible! Some Mushroom are only edible ONCE!
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Rank: Member Joined: 9/25/2008 Posts: 510
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KEBS MD Charles Ongwae, six others arrested over sugar scandal I AM trust in GOD, I AM belief in THYSELF
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