This archive report was first published on 20 August 2020.
Published on August 20, 2020, the government announced plans to lease Chemelil, Miwani, Muhoroni, Nzoia, and South Nyanza sugar companies to private investors.
The proposed leasing arrangement will see the winning bidders operate the factories for at least 25 years, producing sugar as private entities while the government retains ownership of the assets.
KEPSA CEO MS Karuga welcomed the move, stating that it will benefit all stakeholders across the value chain, including suppliers, transporters, production, service, and support extension workers, and farmers in the respective regions.
“We recommended leasing of the debt-ridden sugar mills to private investors two years ago to give them a new lease of life. We therefore welcome the government’s move to restructure and lease these firms,” Ms Karuga said.
The five mills have had loss-making streaks for over a decade, negatively affecting local economies and the country as a whole. The government hopes that leasing the mills to strategic investors will bring in efficiency, return the mills to profitability, and enhance the competitiveness of Kenyan sugar in both local and global markets.
