NAIROBI, Kenya — The Office of the Ombudsman has directed the Principal Secretary in the State Department for Agriculture to release all documents related to the leasing of four public sugar companies, issuing a binding 21-day deadline and warning that failure to comply could trigger criminal prosecution.
In a notice dated Monday, August 8, 2025, the Commission on Administrative Justice (CAJ) said the PS had violated statutory timelines under the Access to Information Act of 2016 after failing to respond to a citizen’s request for disclosure on the controversial leases awarded to private firms.
“The Commission has ordered the Principal Secretary of the State Department for Agriculture to release information on the leasing of sugar companies within twenty-one days,” the notice stated. “Failure to do so will result in a recommendation for criminal prosecution against the Principal Secretary under Section 28 of the Access to Information Act of 2016.”
The directive follows a complaint lodged by a citizen, identified as Mr. AO, who sought access to the leasing arrangements on July 29, 2025. The Ombudsman noted that despite formal notification on September 5, 2025, the Ministry did not respond within the mandatory seven days.
According to the Commission, the request centred on two categories of records: the letters of award issued to private entities leasing Muhoroni, Nzoia, Chemelil, and Sony Sugar Company Limited, and the full lease agreements, including the criteria used in awarding the concessions.
In its determination, the CAJ concluded that the State Department holds the requested information and acknowledged that some sections may contain exempt material under Section 6(1) of the Act, which protects information relating to national security, commercial confidentiality or ongoing legal proceedings.
However, the Ombudsman ruled that such exemptions could be addressed through redaction rather than nondisclosure.
“The information requested by Mr. AO may contain elements that are subject to limitations under Section 6(1)… Therefore, a redacted version of the requested information/documents will suffice,” the Commission stated.
Acting under Sections 22 and 23 of the Act, the Ombudsman issued a binding order compelling the PS to provide access to the letters of award, lease agreements, and evaluation considerations that guided the selection of lessees.
The Commission further reminded the Ministry that non-compliance would expose the PS to criminal liability under Section 28, which prescribes penalties for wilful refusal to release information.
The sugar leases — awarded between early 2024 and May 10, 2025 — have been a source of heated public debate. Under the arrangement, Nzoia Sugar Company is leased to West Kenya Sugar Company, Chemelil to Kibos Sugar and Allied Industries, Sony Sugar to Busia Sugar Industries Ltd, and Muhoroni to West Valley Sugar Company.
The 30-year contracts require private operators to inject capital to revive the debt-ridden factories, pay annual land rents of Sh40,000–45,000 per hectare, and remit concession fees of Sh4,000 per tonne of sugar and Sh3,000 per tonne of molasses. A one-year goodwill payment is also mandatory.
According to government terms, the mills remain public assets, all improvements revert to the state at the end of the lease, and lessees must retain at least 80pc of the existing workforce.
Opposition leaders have criticised the deals as opaque and prone to capture by sugar cartels, warning that the concessions amount to backdoor privatization that could undermine competition and fail to address chronic challenges such as cheap sugar imports.
President William Ruto has defended the model as a “win-win” framework for farmers, workers, and the economy, saying the leases will guarantee monthly payments to cane growers — similar to reforms in the tea and coffee sectors — and will be terminated if private operators fail to meet investment or production targets.
The Ombudsman’s ruling now places the Agriculture Ministry under pressure to make the agreements public, a move that could shape ongoing debates on transparency, state-asset management and farmer protections in Kenya’s key sugar belt.
