The Kenya Sugar Board has defended the government’s decision to lease out several state-owned sugar factories to private investors, amid growing backlash from political leaders in Western Kenya. Speaking in Nairobi, Board CEO Jude Chesire emphasized that the leasing arrangement prioritizes farmers and seeks to revive the struggling sector through capital injection and improved efficiency.
“Farmers come first,” Chesire stated. “If investors fail to modernise mills, support cane development, or pay farmers weekly as agreed, their leases will be terminated. The 30-year term is justified only by the heavy investment required.”
The government recently signed agreements leasing four factories: Nzoia Sugar to West Kenya Sugar Company, Chemelil to Kibos Sugar, Sony Sugar to Busia Sugar Industry Ltd, and Muhoroni to West Valley Sugar Company. Chesire assured that lease and concession fees will directly benefit farmers, with annual bonuses based on the volume of cane supplied.
However, the leasing plan has sparked protests in Bungoma County, where police dispersed a motorcade led by Trans Nzoia Governor George Natembeya and DAP-K leader Eugene Wamalwa. The leaders condemned the leasing as illegal, citing a lack of public participation and transparency.
“We will do everything possible to stop this illegal leasing,” Natembeya vowed, demanding that workers’ salary arrears be cleared before any handover.
In response, Agriculture Cabinet Secretary Mutahi Kagwe defended the model, stating it replaces a failed privatisation attempt and will restore factory operations. Kagwe confirmed the government would maintain oversight and support workers and farmers financially.
He announced that Sh500 million owed to farmers since 2024 would be paid by July 2025, in addition to Sh1.7 billion disbursed last year. For workers, Sh600 million was paid in 2024 from a total debt that has now risen to Sh5.6 billion. Under a new agreement with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAW), the government will pay Sh1 billion upon lease transfer in May 2025 and an additional Sh1.5 billion in July 2025.
Despite these assurances, regional leaders insist that meaningful consultation with farmers and communities must precede such a significant policy shift.
