NAIROBI, Kenya — In a significant move aimed at breathing new life into the country’s troubled sugar industry, the Kenyan government has wrapped up the leasing process for two of its state-run sugar factories: Muhoroni Sugar Company and Chemelil Sugar Company.
Responding to inquiries from Members of Parliament, Agriculture and Livestock Development Principal Secretary Paul Rono announced that two private firms West Valley Sugar Company and Kibos Sugar and Allied Industries Limited have each secured 30-year leases for the respective mills.
“The bids received were evaluated and tenders were awarded. Muhoroni Sugar Company (in Receivership) and Chemelil Sugar Company Limited were leased to West Valley Sugar Company and Kibos Sugar and Allied Industries Limited respectively,” he said.
The Ministry revealed that the international tender was open from February 28 to March 4, 2025, and submissions closed on March 25, 2025. The successful handover of the two factories took place on May 10, 2025.
The selection process adhered strictly to the Public Procurement and Asset Disposal Regulations of 2020, evaluating bidders on eligibility, technical strength, and financial muscle.
Only firms scoring 80 percent or higher in the technical review advanced to the financial evaluation phase.
The leases come after repeated appeals by legislators for the government to take decisive action to restore efficiency and profitability within the sugar sector.
Officials at the Ministry of Agriculture say this public-private partnership is anticipated to inject fresh capital, open up employment opportunities, and offer direct benefits to sugarcane growers in the western parts of the country.
Beyond revitalizing the sugar industry, this move is part of a wider state initiative to lease underperforming parastatals in a bid to make them viable again.
It also serves a fiscal purpose generating additional revenue to help fund the 2025/2026 national budget.
