This archive report was first published on 7 August 2020.
Kenya's sugar industry is facing a major overhaul as the government moves to lease out State-owned sugar millers. However, the process has hit a snag with the revocation of appointments of board members.
Agriculture Cabinet Secretary Peter Munya issued a special gazette notice on July 16, 2020, dissolving the boards of Nzoia, Chemelil, and Sony sugar companies. The move effectively halts the leasing process of the struggling companies.
According to the notice, the appointments of board members, including Nzoia Sugar chairman Joash Wamang'oli, businessman Zedekiah Bundotich of Chemelil, and Sony Sugar's Mr. Owino Likowa, have been revoked.
Leasing of the three mills had kicked off on Tuesday, with 29 companies expressing interest in running the companies. However, the revocation of board appointments has put the process on hold.
The government had planned to issue a leasehold period of 25 years to Muhoroni and Miwani sugar companies, which are under joint receivership.
Chairman of the Kenya Association of Sugarcane and Allied Products (Kasap), Atyang' Atiang', has welcomed the degazettment but called on the Interior ministry to guard the premises to safeguard them from vandalism.
“Regional police commanders should now put these companies on 24-hour surveillance because the directors can collude with the management and take whatever they can,” he claimed on Thursday.
