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CS Kagwe: No Sugar factory was sold; only leased

The CS said the government has leased them out through a transparent process that received full parliamentary approval.

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by PERPETUA ETYANG

News13 May 2025 - 14:59
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In Summary


  • The clarification comes amid rising public interest and political scrutiny over the leasing of state-owned sugar factories.
  • A section of leaders have raised concerns over transparency and public participation on the leasing of sugar factories.

Agriculture CS Mutahi Kagwe before the Agriculture committee of the National Assembly on Tuesday, May 13, 2025..

Agriculture Cabinet Secretary Mutahi Kagwe has clarified that no sugar factory in Kenya has been sold.

The CS said the government has only leased them out through a transparent process that received full parliamentary approval.

Speaking before the National Assembly’s Agriculture Committee, CS Kagwe dismissed claims that the leasing process lacked transparency.

The CS emphasised that all stakeholders were involved from the beginning.

“No sugar factory has been sold. It’s leasing that has been done, and Parliament approved the whole process. I dismiss assertions that the process was opaque, considering all stakeholders were involved,” Kagwe said.

 “We are ready to submit any document for scrutiny by Parliament and the general public, as requested by Kisumu Woman Representative Ruth Odinga to assure the public on the lease process.”

Supporting Kagwe’s remarks, National Assembly Agriculture Committee Chair John Mutunga echoed that the entire leasing process was subjected to parliamentary oversight.

“The sugar leasing process was taken through Parliament; that's why other members are not worried. The leasing process was not restricted,” Mutunga noted.

The clarification comes amid rising public interest and political scrutiny over the leasing of state-owned sugar factories.

A section of leaders has raised concerns over transparency and public participation on the leasing of sugar factories.

CS Kagwe assured the public that the government remains committed to accountability.

On Tuesday, the Kenya Sugar Board defended the government’s decision to lease out some state-owned sugar factories to private investors, amid growing protests from Western Kenya leaders.

Speaking during a meeting in Nairobi, the board’s CEO Jude Chesire stated that the leasing model has been designed with farmers at the core.

“Farmers come first. If investors leasing sugar factories fail to modernise mills, support cane development, or pay farmers weekly as agreed, the government will revoke their leases, simple,” Chesire stated.

His remarks followed protests in Bungoma County on Monday, where anti-riot police dispersed a motorcade led by Trans Nzoia Governor George Natembeya.

The leaders attempted to access Nzoia Sugar Company, one of the four factories recently leased to private operators.

Under the deal, Nzoia Sugar will be managed by West Kenya Sugar Company, Chemelil by Kibos Sugar and Allied Industries, Sony Sugar by Busia Sugar Industry Ltd and Muhoroni by West Valley Sugar Company.

Natembeya, accompanied by DAP-K Party leader Eugene Wamalwa and several other leaders have denounced the leasing as illegal, citing lack of public participation.

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