President William Ruto addresses the nation during the 62nd Madaraka Day celebrations at the Raila Odinga Stadium in Homa Bay county, June 1, 2025. /PCSPresident William Ruto has assured farmers and communities in sugar-growing regions that the government has not sold any state-owned sugar factories.
He clarified that the recent leasing of mills is a strategic move to inject efficiency and sustainability into the struggling sector.
Speaking during the 62nd Madaraka Day celebrations, Ruto addressed concerns over the fate of sugar factories including Nzoia, Chemelil, Muhoroni, and Sony, following the government’s decision to lease them to private investors.
“Let it be clearly understood: neither the factories nor their land have been sold. They remain public property, leased under strict terms to private sector players to restore profitability, pay farmers on time, and turn around the industry,” Ruto said.
He noted that the competitive leasing of the four factories is part of broader agricultural reforms aimed at modernising the sector, improving farmer incomes, and safeguarding livelihoods in key sugar belts.
Ruto said inefficient mills—many of which operate on equipment over 50 years old—have been short-changing farmers by producing just one tonne of sugar from nearly 20 tonnes of cane.
In contrast, modern mills offer higher recovery rates, translating to better returns for cane growers.
“Outdated mills are not only uneconomical, but they also rob our farmers of the fruits of their hard work,” he said, stressing that milling efficiency is central to farmers’ interests.
The leasing, he explained, will enable factories to modernise operations, ensure consistent payment to farmers, and settle salaries and wages owed to workers—chronic issues under state management.
“For years, these factories were a financial burden on the exchequer, surviving on repeated taxpayer-funded bailouts while failing to pay farmers and workers,” he said.
The President acknowledged that the government has recognised its limitations in managing these mills.
He stated that the impact of recent reforms in the sugar sector is already evident.
Sugar production has surged from 490,000 metric tonnes in 2023 to 815,000 in 2024—a 66 per cent increase.
This has cut sugar imports by 70 per cent and raised farmers’ earnings from Sh50 billion to Sh90 billion.
President Ruto affirmed that similar interventions in agriculture, including fertiliser subsidies and sector-specific reforms, are lifting rural economies.
He cited increased earnings across tea, coffee, milk, and sugar as evidence of the success of the government's focus on farmer-centred growth.
“Our mission is simple: to make agriculture work for every Kenyan who tills the land. Leasing is not privatisation. It’s about revival, modernisation, and dignity for our farmers,” Ruto said.
