NAIROBI, Kenya – Sugarcane farmers in the country can sigh with relief after the government announced new prices.
The farmers are now set to earn more following the Kenya Sugar Board’s decision to raise the official cane price from Sh5,300 to Sh5,500 per tonne.
The Cane Pricing Committee approved the revised rate, which will take effect on May 26, 2025.
This price adjustment is part of broader ongoing reforms aimed at strengthening the sugar industry and ensuring fair compensation for farmers. In a directive issued to all 15 licensed millers, including recently leased state-owned factories, Principal Secretary Dr. Kipronoh Ronoh emphasised the importance of adhering to the new minimum price.
The PS further instructed all millers to make timely payments to farmers, reinforcing the government’s commitment to safeguarding farmer welfare and improving livelihoods in sugarcane-growing regions.
Why senators summoned Agriculture CS Mutahi Kagwe
Last week, senators summoned Agriculture Cabinet Secretary Mutahi Kagwe to explain the government’s contentious decision to lease four state-owned sugar factories to private millers for 30 years, a move that has ignited political and public backlash in sugarcane-growing regions.
The Senate Standing Committee on Trade, Industrialisation, and Tourism, chaired by Kwale Senator Issa Juma, is demanding a full account of the leasing process, including the lease agreements, asset registers, evidence of public participation, and the role of the Privatisation Commission.
At the centre of the storm are four mills—Nzoia, Chemilil, Sony, and Muhoroni—that have been handed to private firms in deals worth Sh12.29 billion in investments.
West Kenya Sugar Company took over Nzoia, Kibos Sugar got Chemelil, Sony was leased to Busia Sugar Industry, and West Valley Sugar Company acquired Muhoroni.
But questions have swirled around the transparency of the process, with senators accusing the Ministry of Agriculture of bypassing court orders, locking out local stakeholders, and potentially opening the door to land grabs under the guise of revival.
Busia Senator Okiya Omtatah, one of the fiercest critics, said the decision was rushed and lacked adequate public engagement.
“What safeguards are in place to protect farmers, employees, and local economies? We need to know what happens to public assets and service delivery once these leases kick in,” he said.
How Senator Sifuna reacted to the leasing of sugar firms
Nairobi Senator Edwin Sifuna echoed the concern, warning that the leases could end up benefiting land speculators instead of reviving the mills.
“If the goal is revival, why lease the land to someone who might only be interested in the real estate value? The risk of asset stripping is real,” Sifuna said.
Senator Godfrey Osotsi (Vihiga) questioned why the public was “blindsided,” adding that previous experiences, such as the troubled privatisation of Mumias Sugar, had shown the dangers of sidelining local voices.
Kakamega Senator Boni Khalwale accused the ministry of token consultations.
“Meeting the Governor of Bungoma and the National Assembly Speaker is not public participation,” he said, claiming leaders had rubber-stamped Nzoia’s lease to West Kenya’s Rai Group without local consent.
