This archive report was first published on 16 July 2020.
On July 16, 2020, sugar sector players in Kisumu expressed concerns over the tendering deadline for the leasing of five State-owned sugar factories.
The stakeholders, led by Muhoroni MP Onyango K'oyoo, sought an extension of the deadline to allow for further consultations on the terms of reference for prospective investors.
At a meeting convened by K'oyoo, the stakeholders constituted a committee comprising experts, farmers, union leaders, transporters, workers, and representatives from cooperatives to seek clarity on the lease document.
The committee is expected to present recommendations to the Ministry of Agriculture through K'oyoo.
The five factories slated for leasing are Chemelil Sugar Company, South Nyanza Sugar Company, Nzoia Sugar Company, Miwani, and Muhoroni, which are already under receivership.
According to the government, the deadline for submission of the expression of interest is August 3, and bidding documents will be opened the following day.
However, the stakeholders associated with Miwani, Muhoroni, and Chemelil sugar factories said the period allowed was too short to identify and get a credible leasee.
'The period is too short, especially for international investors, unless somebody has a predetermined investor he is pushing for. We want the period extended for us to get the best for our factories,' said K'oyoo.
Another resolution reached at the meeting was that the lease period be reviewed downwards from 25 years.
On July 2, Agriculture Cabinet Secretary Peter Munya announced a raft of measures to revive the sugar sector, including writing off debts of State-owned mills and out-grower institutions, stopping the importation of brown sugar, and privatisation of the factories through a long-term lease model of at least 20 years.
