KISUMU, Kenya – In response to recent media reports suggesting a rift between him and former Prime Minister Raila Odinga over the leasing of Kenya’s sugar factories, Kisumu Governor Prof. Anyang’ Nyong’o has clarified that he is fully aligned with Odinga on the issue.
In a statement on May 10, 2025, Nyong’o stated that both he and Odinga share a common position on the need for the government to step away from direct management of sugar factories.
Instead, they support the leasing of these mills to private investors through a transparent and competitive process.
This clarification comes after Nyong’o’s vocal opposition to the government’s decision to lease Chemelil and Muhoroni sugar factories.
In a statement on May 7, 2025, Nyong’o condemned the rushed leasing process, accusing the government of excluding stakeholders and undermining the interests of local farmers and communities.
“These mills are vital to the livelihoods of Kisumu County residents and the wider sugar belt region. Leasing these mills to private companies without proper consultation is an assault on our people,” Nyong’o remarked.
He expressed concerns that the government’s approach could lead to monopolies in the sector, disempowering local communities and violating constitutional principles on public participation and transparency.
The leases are set for 30 years, a move that Nyong’o fears will turn the sugar industry into a monopoly while disempowering local communities. ynews.digital/newsflash/gove…
Nyong’o’s objections also included concerns over the handling of Miwani Sugar Mills’ prime land.
He alleged that despite an ongoing court case, the government was transferring the land to Crossley Holdings Limited, a move he called a further violation of legal and public rights.
Additionally, he criticized the National Land Commission (NLC) for deregistering land titles without involving the county government, a decision he believes could fuel ethnic tensions in the region.
Despite his criticisms, Nyong’o has made it clear that there is no disagreement between him and Raila Odinga on the broader issue.
“We are fully aligned on this matter. Our shared position is clear: the government must exit the management of these factories and lease them to private investors under a fair and transparent process,” he concluded.
Meanwhile, on May 9, 2025, the government officially completed the leasing of four major sugar factories—Nzoia, Chemelil, Sony, and Muhoroni.
Agriculture and Livestock Development CS Mutahi Kagwe announced that the new lease agreements will span 30 years, with various private companies taking over the operations.
The government has committed to oversight of the process, ensuring accountability while allowing private investors to inject much-needed capital and expertise into the sector.
The government aims to restore the sugar industry, which has faced significant challenges over the years, by leveraging private sector involvement while maintaining public ownership of the land and infrastructure.
Kagwe emphasized that the leasing model was carefully considered after public consultations, legislative reviews, and legal scrutiny.
This initiative is seen as a vital step in addressing the sector’s financial struggles, with the government already having cleared Sh1.7 billion in arrears to farmers and planning to settle an additional Sh500 million by July 2025.
The government has also entered into an agreement with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW) to cover salary arrears and pensions for factory workers during a 12-month transition period.
Kagwe reassured the public that while the factories are being leased out, the government retains ownership of key assets, and the revenues generated will be reinvested into local communities and cane development.
