The Kisii government has agreed with Indian investors to build a Sh5 billion sugar complex.
Governor James Ongwae and Kanoria Group chief finance officer Vinod Vohra signed the deal at the Agricultural Training Centre on Tuesday.
The investment is part of the Sh21 billion committed during the February 25-27 Kisii Entrepreneurship Summit, the governor’s office said.
The project will start in July and be completed in 2018.
It will establish a sugar mill with a capacity to crush 5,000 tonnes of cane a day and produce 172,500 metric tonnes of sugar.
The complex will produce 15 million litres of ethanol and 10MW of power.
“This is a major breakthrough in the agriculture sector of our economy,” Ongwae said.
“It will create 1,000 direct jobs and 2,500 indirect jobs for our people.”
The Kisii government will lease land for the project.
The mill will serve farmers in South Mogirango, Bomachoge Chache, Bonchari, Bomachoge Borabu and Bobasi subcounties.
Kanoria Group will establish a smallholder outgrower support scheme and build a school and dispensary.
“We shall work closely with the county to improve cane growing so there is adequate volume for the complex,” Vora said.