President William Ruto has defended the government’s decision to lease out key public sugar mills, saying the move will relieve taxpayers from years of financial strain caused by unproductive factories. Speaking during the 62nd Madaraka Day celebrations held in Homa Bay County, the President said the state had spent billions attempting to revive the mills with little success.
The mills recently leased through the Ministry of Agriculture and Livestock Development include Sony Sugar, Chemelil, Nzoia Sugar, and Muhoroni Sugar. According to President Ruto, these facilities had become fiscal black holes, surviving on repeated bailouts while failing to pay farmers and workers.
“For years, these factories were a financial burden on the Exchequer. The government has acknowledged its limitations in managing these mills,” said Ruto, emphasizing that leasing will bring efficiency, improve sugar production, and ensure better returns to farmers.
He noted that some of the outdated milling plants recover only one tonne of sugar from nearly 20 tonnes of cane, drastically reducing farmer earnings. “Efficient mills are more profitable and offer farmers optimal returns,” he added.
The President highlighted significant improvements in the agriculture sector, including a rise in sugar production from 490,000 metric tonnes in 2023 to 815,000 metric tonnes last year, reducing sugar imports by 70 percent. During the same period, farmer earnings grew from KSh 50 billion to KSh 90 billion.
Ruto credited strategic interventions like fertiliser subsidies for boosting food production by 50 percent. He also cited reforms in the coffee and tea sectors that have led to increased farmer incomes. Milk prices have risen to KSh 50 per litre, up from KSh 35, while coffee farmers now earn up to KSh 150 per kilo, a jump from KSh 65. Tea earnings grew from KSh 138 billion in 2022 to KSh 215 billion in 2024.
On infrastructure, Ruto announced that discussions have been finalised to extend the Standard Gauge Railway (SGR) from Naivasha to Kisumu and Malaba. Additionally, construction of the Mau Summit–Rironi dual carriageway is expected to begin in July, further bolstering economic development in the region.