This archive report was first published on 20 July 2021.
July 20, 2021, marked a year since the plans to lease 5 financially troubled state-owned sugar factories were put on hold due to legal hurdles.
Despite the setbacks, Cabinet Secretary for Agriculture, Livestock, Fisheries and Cooperatives Peter Munya has confirmed that the plans are still on the cards.
"We have not abandoned plans to lease the five sugar mills. Legal hurdles have stopped us from appointing boards of these factories but we are looking at how we can have the present court cases negotiated before we proceed with the process," Munya said.
The 5 state-owned sugar milling factories slated for leasing include Nzoia Sugar Company, Chemelil Sugar Company, Miwani Sugar Company (in Receivership), Muhoroni Sugar Company (in Receivership), and South Nyanza Sugar Company.
The Kenya Union of Sugar Plantations and Allied Workers (KUSPAW) has filed a case in court, stopping the leasing out of these sugar mills and setting conditions that must be met before the process can commence.
The Union argues that the state-owned mills must settle pending salaries owed to sugar farmers and be involved in the leasing exercise.
