The fate of employees at Chemelil Sugar Company and Muhoroni Sugar Factory has finally been clarified following the leasing of the two state-owned mills to private firms. In a statement presented to Parliament, Agriculture Principal Secretary Dr. Kipronoh Ronoh confirmed that Kibos Sugar and Allied Industries Limited has officially taken over operations at Chemelil, while West Valley Sugar Company Ltd now operates Muhoroni Sugar.
Dr. Ronoh assured that all salary arrears, benefits, and emoluments owed to employees before the handover will be settled by the government. This move is part of a broader reform agenda aimed at reviving the sugar sector and restoring efficiency in production.
The international tender for leasing the five state-owned sugar companies was advertised on February 28 and March 4, 2025, with a closing date of March 25, 2025. Following a rigorous evaluation process, the successful bidders were awarded leases, and the official handover was completed on May 10, 2025.
The two sugar firms have been leased for a period of 30 years, a decision approved by the National Assembly. According to Dr. Ronoh, the transition process will ensure minimal disruption to operations. Workers will continue to play a key role in the day-to-day management and maintenance of the factories during this transition.
Crucially, the investors are required to retain all current employees for up to 12 months from the date of takeover, during which time they will operate under existing terms and conditions. Within the first six months, the new operators will identify which employees to retain beyond the transition period.
Bidders were subjected to a strict vetting process, including submission of a Sh200 million bid security, registration documents, and tax compliance certificates. Only firms scoring 80 percent and above in the technical evaluation advanced to the financial assessment stage.
The leasing programme marks a significant milestone in the restructuring of Kenya’s struggling sugar industry, aiming to enhance productivity, efficiency, and long-term sustainability.
