The Kenya Sugar Board has 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.
He explained that the 30-year term is only justified by the heavy capital injection expected and that if they do not deliver, the agreements will be terminated and handed over "to those who truly prioritize our farmers.”
Chesire added that lease and concession fees from the four selected investors will directly benefit farmers, with annual bonuses based on the volume of cane supplied.
“This is not just reform; it is a game changer,” he stated.
His remarks follow 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.
“We will do everything possible to ensure we stop that illegal leasing,” he vowed.
The leaders also demanded the immediate settlement of salary arrears for workers. Agriculture Cabinet Secretary Mutahi Kagwe defended the move, noting that the lease model replaced a failed privatisation plan and will revive the sector by bringing in capital and efficiency.
He said the government will retain oversight, ensure accountability, and support workers and farmers financially.
The government pledged to clear Sh500 million owed to farmers for cane delivered since 2024, with payment due in July 2025. This is in addition to Sh1.7 billion paid to farmers last year.
For workers, Sh600 million was paid in 2024 out of Sh5.3 billion owed.
The debt has since risen to an estimated Sh5.6 billion.
Under a Memorandum of Understanding signed with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), the government will pay Sh1 billion upon lease takeover in May 2025, and release Sh1.5 billion in July 2025 for salary payments.
Despite the assurances, leaders from the region insist such a major policy shift requires full consultation with farmers and local communities.
