In 2019, Agriculture Cabinet Secretary Mwangi Kiunjuri confirmed that 1.9 billion shillings in outstanding payments to sugarcane farmers had been released, with an additional 800 million shillings pending disbursement following the supplementary budget passage.
The government also canceled 85.5 billion shillings in debts owed by cane farmers, part of reforms to address long-standing sector challenges. This followed a task force meeting in Kisumu where stakeholders discussed privatization strategies for state-owned mills.
The sugar sector privatization task force, co-chaired by Kakamega Governor Wycliffe Oparanya and Kiunjuri, was set to submit final recommendations to President Uhuru Kenyatta within two weeks. Proposals included merging smaller state mills to improve competitiveness and revising legislation to restrict sugar imports.
Industry representatives advocated for returning land previously owned by defunct sugar companies to public ownership, with leases granted only to strategic investors for expanding sugarcane production. The task force's deliberations aimed to enhance the sector's financial and operational sustainability.
