NAIROBI, Kenya – The High Court in Nairobi has upheld the government’s plan to lease four state-owned sugar factories to private investors, dismissing a legal challenge that sought to halt the process.
In a ruling delivered on Friday, Justice Chacha Mwita rejected a petition filed by Martin Nyongesa Baraza, who argued that the government had failed to involve the public in the decision to privatize the factories.
The judge ruled that adequate public participation had taken place before the leasing plan was approved.
The decision clears the way for the privatization of Nzoia Sugar Company, Chemelil Sugar Company, Muhoroni Sugar Company, and South Nyanza (Sony) Sugar Company.
The government has defended the move, saying it will boost efficiency, reduce mounting debts, and revitalize the struggling sugar industry.
The sugar sector in Kenya has been plagued by mismanagement, corruption, and financial losses, with many state-owned factories struggling to remain operational.
By bringing in private investors, the government hopes to modernize production, enhance competitiveness, and secure the livelihoods of thousands of farmers who depend on the industry.
While the ruling removes a key legal obstacle, stakeholders—including sugarcane farmers and opposition leaders—remain divided on the impact of privatization, with some fearing job losses and exploitation by private millers.
With the legal hurdle now cleared, the government is expected to move forward with the leasing process, a development that could reshape Kenya’s sugar industry in the coming months.
