This archive report was first published on 5 August 2020.
Kenya's sugar industry is on the cusp of significant change, with 29 companies expressing interest in leasing state-owned sugar mills. This development comes after the government launched an international expression of interest in July 2020, which closed on August 3, 2020.
According to the Agriculture Food Authority (AFA), the companies that have expressed interest in leasing the mills had presented their documents online and physically. A technical committee, comprising officials from various agencies under the AFA, presided over the exercise of opening the bids at AFA headquarters on Wednesday.
Speaking during the exercise, Interim Head of Horticulture Crops Development Benjamin Tito noted that some companies had submitted six bundles of documents, while one company presented a single document.
The leasing model is a departure from the proposed privatization of the sugar companies, which would have seen strategic investors buying a stake in the companies. Instead, the government is inviting private sector players to take long-term leases on the five state-owned mills.
As part of the reform agenda, the government has also introduced the Sugar Regulations 2020 and the Sugar imports, exports and by-products regulations 2020. These regulations aim to address sugar cane development plans, milling capacity, and sugar cane pricing committees.
On July 10, 2020, the government through an International Expression of Interest advertised for private sector players to declare interest in leasing the state-owned sugar mills. The bidding process closed on August 3, 2020.
