NAIROBI, Kenya – President William Ruto has defended the government’s decision to lease out four state-owned sugar factories, terming the move a necessary step to boost efficiency, revive profitability, and secure farmers’ livelihoods.
Ruto, who spoke during the 62nd Madaraka Day celebrations in Homa Bay County, asserted that the move to lease the factories, including Nzoia, Chemelil, Sony, and Muhoroni, was long overdue and is aimed at revitalizing the struggling sugar sector.
“We must recognize that increasing the efficiency of milling plants is central to farmers’ interests,” said Ruto.
“Efficient mills are more profitable and offer farmers optimal returns.”
The head of state lamented the outdated condition of many public mills, noting that some still operate on machinery that is over 50 years old, which drastically reduces sugar recovery rates.
“Outdated mills, some of which run on plants that are over 50 years old, recover only one ton of sugar from nearly 20 tons of cane, shortchanging our growers and robbing them of their sweat.”
The leasing of the mills, which followed a competitive process, is part of the government’s broader agricultural reform agenda to boost productivity and enhance food security.
The decision, however, has faced resistance from a section of leaders and farmers who fear the move could lead to job losses or exploitation by private investors.
The head of state maintains that the reforms are in the best interest of farmers and the economy at large as government moves to lease state owned parastatals.
President William Ruto had in 2023 signed into law the Privatization bill that aimed to fast-track privatization of state-owned corporations by empowering the National Treasury to sell state-owned entities without parliamentary approval.
According to the government, the move is anchored on addressing rising public debt and reduce its financial burden, aiming to attract investors and generate revenue.
Likewise, it aims to return the poorly performing parastatals to profitability.
Last week, the government announced plans to sell its stake in Safaricom to raise resources by 2026 as part of its privatization agenda.
