NAIROBI, Kenya – The Kenya Sugar Board is facing growing criticism from leaders and residents of Western Kenya following its decision to lease state-owned sugar factories to private investors.
The move, aimed at revitalizing the struggling sector, has sparked protests in several parts of the region, with local politicians accusing the government of sidelining farmers and communities.
Speaking during a meeting in Nairobi, the board’s CEO, Jude Chesire, defended the leasing model, emphasizing that it was designed to prioritize farmers.
According to Chesire, the 30-year lease agreements with four private investors were structured to ensure that the mills are modernized and that farmers receive timely payments.
“Farmers come first,” Chesire assured. “If the investors fail to meet their obligations, including modernizing the mills, supporting cane development, or paying farmers on time, the government will terminate their leases and hand them over to those who truly prioritize our farmers.”
The board’s defense of the model comes amid growing opposition, especially from leaders in Bungoma County, where protests erupted on Monday.
Trans Nzoia Governor George Natembeya led a motorcade of demonstrators who were dispersed by anti-riot police as they attempted to access Nzoia Sugar Company, one of the four factories recently leased to private operators.
Natembeya, along with several political leaders including DAP-K Party leader Eugene Wamalwa, condemned the leasing deal, calling it illegal due to the lack of public consultation.
“We will do everything possible to ensure we stop that illegal leasing,” Natembeya vowed, echoing concerns over the impact on local workers and communities.
The four factories affected by the lease agreements include Nzoia Sugar, which is being managed by West Kenya Sugar Company, Chemelil, now under Kibos Sugar and Allied Industries, Sony Sugar, which has been leased to Busia Sugar Industry Ltd, and Muhoroni, now managed by West Valley Sugar Company.
The controversy centers on concerns over the legality and transparency of the leasing process, with leaders from the region arguing that such a significant policy shift requires full consultation with farmers and local stakeholders.
Agriculture Cabinet Secretary Mutahi Kagwe, however, has defended the move, stating that the leasing model was a better alternative to the failed privatization plan that had previously plagued the sector.
He assured that the government would maintain oversight and ensure accountability, with financial support for both workers and farmers.
“We are committed to reviving the sector by injecting capital and efficiency,” Kagwe said. “We will support the workers and farmers financially.”
The government has pledged to settle Sh500 million in outstanding payments to farmers by July 2025, covering cane deliveries made since 2024.
Additionally, it has cleared Sh1.7 billion in payments to farmers for the previous year.
Workers at the sugar factories, who are also affected by the leasing, have seen their wages delayed, with the government promising to pay Sh600 million in salary arrears.
However, the debt owed to workers has since increased to Sh5.6 billion.
Under a Memorandum of Understanding with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), the government has committed to clearing Sh1 billion upon the lease takeover in May 2025, with a further Sh1.5 billion scheduled for release in July 2025 to cover outstanding salary payments.
Despite these assurances, the controversy surrounding the leasing of the factories remains unresolved.
Local leaders are insisting that farmers and communities must have a say in such pivotal decisions, with some questioning whether the interests of Western Kenya are being adequately represented in the ongoing reforms.
