Government Pushes Forward Controversial Leasing of State-Owned Sugar Mills – Billions at Stake!

The national government has moved forward with a high-stakes plan to lease out four state-run sugar factories to private investors — sparking outrage and support in equal measure.

The once-thriving Nzoia, Chemelil, Muhoroni, and Sony Sugar factories are at the center of this explosive development, with a staggering Sh12.29 billion deal aimed at reviving the crumbling mills.

While some leaders hail it as a financial rescue, others see red flags of exploitation and land grabbing.Big Money, Big PromisesThe lucrative arrangement includes Sh5.7 billion from West Kenya Sugar for Nzoia, Sh4.5 billion from Kibos Sugar for Chemelil, and Sh1 billion each from West Valley Sugar and Busia Sugar for Muhoroni and Sony Sugar respectively.

On top of that, private firms will dish out Sh521 million in what the government calls “goodwill fees” just to lease the land — an amount that’s already raising eyebrows.

Council of Governors Chairperson Ahmed Abdullahi who expressed support for the plan to lease state-owned sugar factories. (Photo: Council of Governors)

CS Mutahi Kagwe Speaks OutAgriculture CS Mutahi Kagwe confirmed the investment during a press conference in Mombasa, stating that the funds would clear unpaid salaries and farmers’ dues.

He promised Sh1.5 billion would be released by July, followed by quarterly payments of Sh1.17 billion.Governors Clap, Senators Clap BackCouncil of Governors chair Ahmed Abdullahi cheered on the leasing plan, calling it the only viable solution after years of government mismanagement.

Bungoma Governor Kenneth Lusaka also backed the move, citing Naitiri Sugar’s private success story. But not everyone is buying it.Western Senators Sound Alarm BellsWestern region senators have come out guns blazing, blasting the process as secretive and possibly corrupt.

The Senate Trade Committee has summoned Kagwe to explain exactly what’s on the table — including land leases, company assets, and public participation, which critics claim has been nonexistent.

Senator Boni Khalwale didn’t mince words: “You don’t decide the fate of thousands with a closed-door meeting. The people must be involved, or this becomes another scandal in the making.”

As Kenya watches closely, the sugar saga is far from over. Will the leasing deal sweeten or sour the future of these iconic mills?

Wamuzi News Ke

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