KERUGOYA, Kenya, Dec 1 – Mwea Rice Mills (MRM)is one of the assets that government has set for privatization in the recently released Kenyan Gazette.
The rice mill is a limited liability company jointly owned by the National Irrigation Authority (55%) and Mwea rice farmers through Mwea Rice Growers Multipurpose Co-operative Society Limited (MRGM) (45%).
The main rice mill at Mwea Irrigation Scheme with its major function being storage, milling and marketing of rice from the Irrigation Scheme.
The plan to privatize has spark a lot of reactions from the rice farmers and leaders of Kirinyaga county.
Mwea Member of Parliament Mary Maingi led the meeting with MRGM members where they passed a resolution that the society will purchase all government shares.
Addressing the media after the meeting at Mwea MRGM offices the legislator said Mwea Rice Mills is like a cultural heritage of Mwea and cannot be sold to outsider.
She added that if government intends to sell its 55% share then the farmers are ready for it.
“The government can sell its shares to the Mwea farmers only. This mill is not going anywhere; we are not going to allow an outsider to purchase the facility,” the MP said.
Alfred Nderitu, former Mwea MP and rice farmer, the only option government has if to sell MRM to MRGM not two ways.
He also noted the government hast informed the farmers who owns the 45% shares on the plans to privatize it, the numbers of shares and value per share.
Nderitu noted the 7,500 farmers with support of leaders can raise the amount the government want and pay for the shares.
“This mill is own by two people, government and MRGM. We as farmers have not reactive any communication concerning the privatization, numbers of shares and value per share, we are 7,500 members and we can raise any amount the government want,” Nderitu said.
His sentiments were backed by former deputy governor Peter Ndambiri who said the government cannot ignore 45% shareholders in decision making.
He said the government should listen to people through public participation that can be held in Mwea.
“MRM belongs to the farmers. Government has 55% shares but cannot ignore the owners of 45%. The public participation is done in Nyeri which is not fair to Mwea farmer. Government should listen to people of Mwea ”
Ndege Muruiki, chairperson Mwea Rice Growers Cooperative Society, said MRGM has been existence since 1967 and its part of MRM. He affirmed their readiness to buy all government shares in MRM.
According to Treasury, the privatization and restructuring of the firms is expected to help the government raise additional revenue, cut demand for government resources by the firms, improve the country’s regulatory environment, encourage private sector participation in the economy and spur competition.
