28/11/2023
```HON KABINGA WATHAYU,OGW```
*STATEMENT ON THE IMPENDING PRIVATISATION OF MWEA RICE MILLS*
Some time this month it came to my attention on the intention of the government to privatize some of its businesses, among them Mwea Rice Mills (MRM) located at Ngurubani Town in Mwea Constituency.
The merits and demerits of privatisation are as varied as those discussing them. It is for this reason I choose to take time to reflect on MRM and the challenges it has gone through before engaging in the current dabate. Am aware, the Government has adopted a revised Privatisation Act, 2023, which not only provides for the procedure of privatisation but also on the circumstances. Parliament, in its wisdom approved the said law.
On the procedure of privatisation, public participation is key. It is in the spirit of the aforementioned law that the National Treasury and Ministry of Economic Planning has called for public participation on the privatisation of MRM before December 11,2023.
On the circumstances of privatisation, as a former representative of Mwea rice farmers, I know the challenges that MRM has been going through over the years. To name but a few: when I took over Mwea leadership in 2017, I found that shareholders had very limited information about MRM and it's properties especially in Nairobi and they had not been paid dividends for over 10 years. We worked with the then rice farmers leadership and government and in 2018 some dividends were paid. What was paid was however peanuts not commensurate to the unpaid years and the profits earnings of MRM investments.
As a consequence, I initiated reforms some of which lost me friends and political support from certain quarters with vested interests in the investments of MRM. But the farmers emerged better off, albeit to a very limited extent because the vested interests fought back viciously.
The decision to privatise MRM has raised anxiety among Mwea people. And rightly so because, one there is a perception the vested interests at MRM now want to formally acquire and control the wealth of MRM which is the wealth of Mwea people. It behooves upon the government to communicate effectively to the people and disabuse this notion.
Two, Mwea has had its history with privatisation before. That history has not been good because while it gave hope to cotton farmers, it turned out to be a mystery of history. Here, I refer to privatisation of Mwea Cotton Ginnery. Under my leadership, no matter where I knocked and searched I could not find answers on the Mwea Cotton Ginnery, even the ownership of the land remains a mystery since the 90s when Nyayo regime sold the Ginnery to some said Indians.
It is for the said reasons and many others that the government must understand the sentiments and concerns of Mwea people regarding the privatisation of MRM. Public engagement and communication will be key to removing any mistrust and suspicion. As they say, the devil is in the detail. And, the road to hell is paved with good intentions!
On my part, as a rice farmer and leader in Mwea, I have engaged my colleague Hon Alfred Nderitu on our different perspectives and efforts on MRM revitalisation during our different leaderships. I may not delve into the substance of our discussions until the appropriate time, but we are engaging.
Further, I have engaged stakeholders such as Mwea Irrigation Water Users Association (IWUA), MRGM, Lainisha Sacco and so on and I know entities such as MRGM have started consultations on this important process.
As it remains, our wealth is our business and in due course we will be engaging the farmers directly to ensure effective public participation for interests of Mwea people must come first in this process. That is the red line!
Finally, as agreed with Hon Nderitu, we will be engaging other leaders in Mwea in particular and Kirinyaga County in general to ensure a united voice in vouching for the interests of our people. And, it is for this reason that I call upon our people to remain united and most importantly calm aware that there are leaders handling this matter to ensure the best interests of locals prevail.
END OF STATEMENT
Hon Dr. Kabinga Wathayu, OGW, MPP
