NAIROBI, Kenya – Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has moved to dispel fears over the fate of Kenya’s state-owned sugar factories, asserting that none have been sold.
Appearing before the National Assembly’s Agriculture Committee, the CS stressed that the facilities were only leased out not privatized and that the entire process was conducted with full transparency and parliamentary oversight.
His remarks came in response to growing public concern and political pressure over the leasing of key sugar millers.
Various stakeholders, including legislators, have questioned the integrity of the process, raising issues about transparency, public involvement, and the identities of the leaseholders.
Kagwe maintained that the leasing exercise was above board and inclusive of all relevant actors.
“No sugar factory has been sold. It’s leasing that has been done, and Parliament approved the whole process. I dismiss assertions that the process was opaque considering all stakeholders were involved,” said Kagwe.
“We are ready to submit any document for scrutiny by Parliament and the general public, as requested by Ruth Odinga, to assure the public on the lease process.”
The CS’s appearance followed increased pressure from MPs demanding answers on the criteria used for leasing and whether adequate consultation took place at the community level.
Concerns had also been raised about whether the leasing model aligns with national policy on the management of strategic public assets.
Agriculture Committee Chair and Tigania East MP John Mutunga affirmed that Parliament had indeed played its role in reviewing the leasing framework.
He dismissed claims of secrecy, stating that the process was open and subject to public participation.
“The sugar leasing process was taken through Parliament; that’s why other members are not worried. The leasing process was not restricted and if you feel the lessees are not good enough, you could have tendered,” Mutunga said.
The leasing initiative is part of a broader government strategy to revive Kenya’s struggling sugar sector, which has for years been mired in debt, operational inefficiencies, and management woes.
Rather than opt for outright privatization, the government chose to lease the factories to private investors in hopes of attracting fresh capital, boosting productivity, and ensuring long-term sustainability.
CS Kagwe reiterated that the state remains committed to transparency and accountability throughout the implementation of the leases.
He assured Parliament and the public that all relevant documents and details regarding the process would be made available for scrutiny.
Kagwe submitted that the leasing model was the most viable option to protect public interest while revitalizing the once-thriving sugar industry, and emphasized that the door remains open for continued oversight by both Parliament and the public.
