The much publicized revival of Chemelil Sugar Factory is now under a dark cloud following the emergence of claims pointing to a shadowy leasing process, missing procurement records and undisclosed agreements that, according to insiders, have kept the public uninformed about how the state-owned miller was handed over for operation. Fresh questions emerge over the leasing of Chemelil Sugar Company as sources cite missing procurement records, undisclosed agreements and demands for full public disclosure.
According to messages and documents shared by sources familiar with the matter, the leasing arrangement that ushered in the restart is described as deeply flawed, with claims that procurement steps were bypassed and key records never placed in the public domain.
The sources say attempts to trace the tender through the Public Procurement Information Portal yield nothing, leaving unanswered questions about who bid for the lease, on what terms, and how the winning operator was selected.
There are also reports that no independent valuation of Chemelil’s assets or its nucleus estate was carried out before the lease was executed, even as vast tracts of land were reportedly priced far below prevailing market rates.
They argue that the absence of disclosed lease terms has locked out workers, farmers and the wider public from understanding the obligations of each party and the safeguards meant to protect a strategic state asset.
Further unease comes from claims that court efforts aimed at halting or reviewing the leasing process stall repeatedly, while pressure is quietly applied behind the scenes.
The leasing committee itself is described as skewed, with questions about its composition and decision-making process adding to the mistrust now swirling around the revival.
Stakeholders are now calling on the Cabinet Secretary for Agriculture to table the full leasing agreements, tender advertisements and supporting documents, saying transparency is the only way to restore confidence and clear the fog surrounding the restart of Chemelil and other sugar factories caught up in the same leasing model. "Good morning Nyakundi. The leasing of Chemelil Sugar Company was a very big scam. Workers are dying within the company premises. I want to give you full details. Sawa, thanks. Kindly check your WhatsApp. I have sent several documents relating to the leasing of Chemelil Sugar Company, Muhoroni Sugar Company and other sugar factories. We have a very big problem. The leasing process and procurement law were violated. We tried to obtain court orders, but all efforts were in vain. We do not know which companies bid for the lease. The PPI Portal has nothing to show. We do not know the leasing terms, and no valuation of company assets was done. We demand that the CS for Agriculture tables the leasing agreement documents. Kindly check the tender advert and other related documents. We have several documents to support our case. Kibos Sugar Company has been secretly reaching out to judges. We have tried to go to court to overturn the process, but all efforts have failed. The leasing of sugar factories was a very big scam. Nucleus estate land was leased at Ksh 49,000 per hectare, far below the market price. The leasing tender committee was dominated by one tribe. We do not know how many companies bid for the tender. There is nothing on the PPI Portal up to now. The leasing agreement documents have been hidden from the public. We demand that the leasing process be made public and that the entire process starts afresh."