The government is seeking another extension of Comesa safeguards on sugar as the current ones expire on February 28, potentially exposing local millers to an influx of cheaper imports.

Head of the Sugar Directorate Rosemary Mkok told the Star on Monday that the state is engaging with key decision makers, including the Common Market for Eastern and Southern Africa governing council, to see it secure the third extension.

The current extension was for 12 months effective March 1, 2014. “It is true the government is seeking for another extension for the sugar safeguards from the Comesa,” Mkok said on phone.

However, it is unclear yet on the duration of extension being sought and the likelihood that the state request will be successful as it is yet to tidy up house even with the previous two extensions.

Mkok declined to disclose when the discussions begun. “I will tell my officials to get back to you,” she said.

The directorate was yet to respond on queries for further details by the time of going to press. The Comesa safeguards allow Kenya to maintain a 350,000-tonne ceiling on duty-free sugar imports from within the trade bloc, which stretches through to South Africa.

The country’s sugar sector is ailing, with millers faced with issues of cane supply shortage due to varieties that take long to mature and are rain-fed, rampant cane poaching and general mismanagement.

This leads the state to turn to policy interventions to keep the sector afloat as cheaper imports would spell doom especially to state-run millers, and those that it partially owns such as Mumias Sugar.

Last year, the government said the safeguards would help in the privatise five state-owned millers to return them into profitability, but little has moved since the extension was granted.

The millers lined up for privatisation include Nzoia, Sony, Miwani, Mohoroni and Chemilil. Mumias Sugar, which was partially privatised through sale of a stake on the Nairobi Securities Exchange in 2000 has returned into the red, plagued by corrupt officials alleged to have engaged in an import scam that cost it over Sh1.1 billion.

Mumias reported net losses for the second year in a row for the period ended June 30, 2014, and is now seeking state intervention to rescue it from debts.

On Friday, Cabinet Secretary for Agriculture Felix Koskei said the government will inject Sh500 million into the miller to turn it around. The insolvent Mumias Sugar was initially seeking up to Sh2 billion in the bailout.

Mumias Sugar chairman Dan Ameyo on Monday said the move to protect millers from smugglers would be most ideal as they undertake restructuring programmes. “Mumias will benefit from any safeguards that aim to protect the local industry and we fully support the move to seek an extension,” he said on phone.