The impact of Sugar Industry on Socio-Economic development in Kenya - the case of Muhoroni Sugar Company (1992 - 2017)

Abstract

The study inte nded to examine the impac t of the sugar industry on socio economic development in Kenya, with the general resear ch question being to what extent does suga r industry impact socio economic development in Kenya. The study used Muhoroni Sugar Company (MUSCO) a s a case study. It sought to answer the following question: To what extent does sugar indust ry impact on the socio economic development of Kenya? The specif ic questions were; what contribution has MUSCO made towards the socio economic dev elopment of Muhoro ni Sub County? What challenges does Muhoroni Sugar Company experience which inhibits its capacity to effec tively impact on Socio economic Development of Muhoroni Sub County? To answer these questions, the followi ng specific objectives were set; To assess t he socio economic impact of Muhoroni Sugar industry in Muhor oni Sub County in Kisumu County and To establish factors that hinder Muhoroni Sugar company capacity to promote socio economic development in Muhoroni sub county with a view of offering proposed solutions. This study also set out to test the following research hypotheses: That sugar industry significantly impacts Kenya’s socio economic development; sugar industry has potential of creating job opportunities and good policies can improve performance of the sugar companies in Kenya by boosting their capacity to enhance socio political development in Kenya. The study found out that sugar industry as a sub sector of agriculture is expected to compete with others such as tea, coffee and floriculture in c ontributing to Kenya’s national wealth. The study further established that sugar sub sector is a sleeping giant, which operates below capacity as a result of myriad challenges that have never been addressed for close to five decades due to neglect, lack of clear policies and political goodwill from the government of the day to enhance socio political development of communities in sugar belt areas. Muhoroni Township becomes a ghost town whenever the factory is closed down for routine maintenance, but bursts into a beehive of at the end of three month period during which the business community realizes improved business due to enhanced disposable income. The study concludes by giving proposals for interventions, which the national government, Kisumu County Gov ernment and other stakeholders need to undertake into o rder to enhance social economic development in Muhoroni Sub County and also ensure the sugar sub sector competes with other sub sectors in agriculture in contributing to economic growth of the country.