Energy Cabinet Secretary Opiyo Wandayi has appealed to local communities and political leaders to support the government’s move to lease state-owned sugar factories.
Wandayi said the reforms are critical to reviving the ailing sugar sector and improving livelihoods.
Speaking in Nyakach on Sunday, Wandayi said the leasing plan is a bold but necessary step to ensure sugarcane farmers and factory workers are paid on time, and that the once-thriving industry regains its economic viability.
“I really urge our people and leaders to support this initiative. Our sugar factories must become sustainable, and this is the best way to achieve that,” Wandayi said.
He noted that for years, public sugar mills have been making consistent losses, forcing the government to inject billions in bailouts with little or no improvement.
He described the pattern as a “merry-go-round” that must be broken.
“For a long time, our public-owned sugar factories have been making huge losses. Year in, year out, the government pumps in a lot of money, and after a short while, they relapse into loss-making ventures,” he said.
Wandayi explained that the Cabinet’s decision to lease the factories to private investors aims to introduce better management, increase efficiency, and stabilize payments to stakeholders in the sugar value chain.
“We want to be able to pay sugarcane farmers on time and ensure workers receive their salaries promptly. This is only possible if the factories are run sustainably by capable partners,” he added.
He questioned how private millers such as Kibos, Butali, West Kenya, and Transmara, among others, have continued to operate profitably and meet their obligations to farmers and employees.
“How come private sugar millers continue to make profits, pay their employees and farmers on time? That’s why the government is taking this bold step to reform a vital sector that supports the economy of this region and beyond,” Wandayi emphasised.
While acknowledging concerns raised by some leaders, the CS appealed to political leaders and the public to support the reforms.
He noted that there is room for continued engagement and consultations, particularly between national and county governments.
'I know some leaders have concerns, and that’s okay. The spirit of consultation and engagement still exists. But we must move forward with the leasing process because our people cannot wait any longer to have money in their pockets,” he said.
Wandayi emphasised that the ultimate goal is to make sugar factories sustainable and to restore the economic strength of the regions that rely on sugarcane farming.
Recently, elected leaders from Kisumu County called on President William Ruto to give an executive order to stop the leasing of state-owned sugar factories; Chemelil, Muhoroni, and Miwani, citing irregularities in the process.
The leaders noted that they were not against leasing, but the entire process.
In a joint press statement, the leaders cited lack of transparency, disregard for public input, and threats to local livelihoods.
They described the process as opaque and unconstitutional, claiming it violates the rights of sugarcane farmers who depend on the industry for survival.
