The Kenya Sugar Board has issued a stern warning to private investors in the sugar sector, cautioning that their licenses will be revoked if they fail to meet performance expectations. Speaking on the matter, Board CEO Jude Chesire emphasized that the government will not hesitate to cancel leases for underperforming millers, insisting that the interests of sugarcane farmers must come first.
This declaration follows the government’s controversial leasing of four state-owned sugar factories Nzoia, Chemelil, Sony, and Muhoroni to private investors for a 30-year period. The mills have been leased to West Kenya Sugar Company, Kibos Sugar & Allied Industries, Busia Sugar Industry, and West Valley Sugar Company, respectively. The move is part of a broader plan to revitalize Kenya’s struggling sugar sector through private investment and modernization.
Chesire made it clear that the leases are contingent on investors fulfilling key obligations, including mill modernization, supporting cane development, and ensuring prompt weekly payments to farmers. “Farmers come first,” Chesire said. “If investors leasing sugar factories fail to modernize mills, support cane development, or pay farmers weekly as agreed, the government will revoke their leases simple.”
He added that farmers would also benefit directly from the venture, receiving bonuses based on the cane they supply. Revenue from lease and concession fees for every kilo of sugar processed will be channeled back to the farmers. “This is not just reform; it’s a game changer,” Chesire asserted.
However, the leasing initiative has sparked backlash in the Western region. The takeover of Nzoia Sugar Mill has faced protests led by Democratic Action Party–Kenya (DAP-K) leader Eugene Wamalwa, Trans Nzoia Governor George Natembeya, and politician Cleophas Malala. The leaders, joined by hundreds of sugarcane farmers and residents, condemned the lease as illegal and forceful, defying a court order issued on April 23 that halted the transfer of Nzoia to controversial businessman Jaswant Rai.
The protestors claim the deal undermines the local economy and vowed to persist in their opposition, arguing the leasing process lacked transparency and disregards regional stakeholders.
