NAIROBI, Kenya – Agriculture Cabinet Secretary Mutahi Kagwe has dismissed claims that the government has sold state-owned sugar factories, saying the facilities have only been leased out through a transparent process approved by Parliament.
Appearing before the National Assembly’s Agriculture Committee on Tuesday, CS Kagwe clarified that the leasing agreements were vetted with full stakeholder participation and oversight, amid rising political pressure and public protests over the deals.
“No sugar factory has been sold. It’s leasing that has been done, and Parliament approved the whole process,” Kagwe said. “I dismiss assertions that the process was opaque, considering all stakeholders were involved.”
The CS added that the ministry was open to scrutiny and would provide all relevant documentation as requested, including by Kisumu Woman Representative Ruth Odinga, to assure the public of the lease’s legitimacy.
Committee chair John Mutunga supported Kagwe’s remarks, reiterating that the process went through Parliament and was subject to oversight.
“The sugar leasing process was taken through Parliament; that’s why other members are not worried. The leasing process was not restricted,” Mutunga said.
Mounting Protests and Political Opposition
The clarification follows mounting protests in parts of Western Kenya, where some leaders have rejected the leasing of sugar factories, terming the process as illegal and lacking public participation.
On Monday, Trans Nzoia Governor George Natembeya, alongside DAP-K Party leader Eugene Wamalwa and other local leaders, led a motorcade protest to Nzoia Sugar Company, one of the four factories affected by the deal.
Police dispersed the demonstrators before they could access the premises.
The Kenya Sugar Board has defended the government’s decision, saying it is aimed at reviving the ailing sugar sector through private investment and better management.
Speaking in Nairobi on Tuesday, the board’s CEO Jude Chesire said the leasing model was designed with farmers in mind and included strict terms to protect their interests.
“Farmers come first. If investors leasing sugar factories fail to modernise mills, support cane development, or pay farmers weekly as agreed, the government will revoke their leases—simple,” Chesire said.
Four Factories, Four New Operators
Under the leasing deal:
- Nzoia Sugar Company will be managed by West Kenya Sugar Company
- Chemelil Sugar goes to Kibos Sugar and Allied Industries
- Sony Sugar has been leased to Busia Sugar Industry Ltd
- Muhoroni Sugar is now under West Valley Sugar Company
Critics argue that the decision was rushed and done without adequate involvement of local communities, farmers, and county leaders.
But the Ministry insists the leases are aimed at ensuring operational efficiency, reducing debts, and turning around struggling mills.
