The State Department for Industry came under heavy scrutiny on Tuesday after lawmakers questioned conflicting records on the importation of duty-free raw sugar by Mombasa Sugar Refinery Limited, raising concerns over weak oversight and the possibility that the consignment could enter the local market before Parliament completes its investigations.
Appearing before the National Assembly Departmental Committee on Trade, Industry and Cooperatives on Tuesday, Principal Secretary for Industry Juma Mukhwana struggled to explain why ministry documents indicated the imported sugar originated from Brazil, while the consignment currently being received was reportedly from South Africa.
The committee, chaired by Ikolomani MP Bernard Shinali, demanded an explanation for the conflicting information, with MPs accusing the ministry of appearing before Parliament without complete details on the transaction.
Seeking clarification, MP Joyce Kamene asked, "We need clarity. Where did sugar came from? It's South Africa or Brazil? Buana PS tell us how did it come from South Africa to Brazil or Vice versa."
Othaya MP Wambugu Wainaina questioned whether ministry officials had safeguarded local manufacturers during the approval process, asking, "Were you there in that meeting to protect the manufacturer? The parameters which was given was with two things and it was from Brazil."
Vihiga County MP Beatrice Adagala also criticised the ministry's responses, saying, "Tell us exactly what you're talking about because you're confusing us. Give us the correct details."
Aldai MP Marianne Keitany pressed the Principal Secretary to explain when the sugar's reported country of origin changed.
"In the meeting you sat, the analysis and documents you said are that the sugar is from Brazil. Now the sugar being received is from South Africa; tell us at what point this changed."
She added, "The documents based on this documentation confirm it's from Brazil. Can you clarify on this?"
Mukhwana admitted he did not have all the information requested by the committee.
"I am learning this, and I will go and bring more details on the same."
The admission drew criticism from lawmakers, who questioned why the ministry had appeared before Parliament without complete documentation.
Defending the government's policy, Mukhwana said duty remission on raw sugar was meant to support local manufacturing.
"We set up the factory, and we imported duty-free sugar. If we continue to import something we can make ourselves, it means we cannot support our industries."
Lawmakers also questioned the government's duty remission policy and whether enough consultations had been conducted before tax incentives were granted.
Wainaina asked, "Are you doing public participation to know how many people are using this raw sugar? What or how are we dealing with those who are importing the raw materials? How are we balancing between the high-scale and low-scale industries?"
Mukhwana responded, "The raw sugar we give duty remission, we can give duty remission, and we can waive from 35 percent to 0 percent."
The committee further sought details on Mombasa Sugar Refinery's production capacity, storage facilities and marketing plans, but Mukhwana requested more time, saying, "I'm requesting for more time to respond on this matter."
The request frustrated members, with Keitany asking, "What are we doing, PS? How can you miss these crucial details?"
Lawmakers also questioned whether Kenya has adequate regulations governing raw sugar imports.
Kamene asked, "The remaining sugar, 127Metric tonnes, will also be exempted? The gaps in regulations of raw sugar. There is no law or regulations governing this, no procedures."
Shinali warned, "Those loose arrangements we fear the sugar might enter into the market. PS, can you clarify on this?"
Kajiado South MP Parashina Sakimba also sought assurances that the consignment would remain secure during the inquiry.
Despite the concerns, Mukhwana maintained that the government remained committed to strengthening the sugar industry.
"There will always be challenges, but we are determined to ensure the process is good for Kenyans."
The committee directed the State Department for Industry to return with comprehensive documentation on the conflicting records, the legal basis for duty remission and measures to prevent the duty-free sugar from entering the domestic market before Parliament concludes its inquiry.