The government plans to lease out four public sugar factories—Nzoia, Chemilil, Muhoroni and Sony—under a carefully structured process that has received strong backing from some key industry stakeholders. 

The initiative, spearheaded by a committee led by Kenya Sugar Board Chief Executive Officer Jude Chesire, is being shaped through a collaborative approach that includes farmers, union representatives and government agencies. 

This strategy is already fostering optimism among industry players who believe the lease model offers a viable path to sustainability without compromising ownership or livelihoods. 

During a recent meeting convened by Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, both the Kenya National Federation of Sugarcane Farmers and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAWU) voiced their support for the leasing plan. 

Kagwe reassured the unions that no decision would be made unilaterally. Instead, ongoing negotiations are expected to address the concerns of workers and farmers before any handovers take place. 

“We cannot ignore the unions, we cannot ignore the farmers’ representatives,” Kagwe said, emphasising that lessees will be thoroughly vetted and expected to meet stringent government conditions before taking over operations. 

The government’s transparency and willingness to involve all players mark a shift from past privatisation efforts that alienated stakeholders and failed to stabilise the industry.

The new approach aligns with submissions made to the earlier Sugar Taskforce, co-chaired by former Agriculture CS Peter Munya and former Kakamega Governor Wycliffe Oparanya.  

Farmers have consistently expressed a preference for leasing over outright privatisation, citing their positive experiences with private millers who pay regularly and operate more efficiently. 

Public participation 

National Secretary General of the farmers’ federation, Kilion Osur Anyango, said that leasing would level the playing field for cane growers.

“Farmers were very clear during public participation that we do not want privatisation. Leasing will allow them to receive consistent payments, just like those supplying private millers.”

He also called for standardised weighbridge systems across the board to eliminate long-standing concerns about manipulation and unfair pricing. 

Anyango further urged the government to establish a Sugar Arbitration Committee to address disputes that have historically ended up in protracted court battles.  

He noted that legal entanglements have significantly delayed reforms and that an independent arbitration body would help resolve such issues swiftly and equitably. 

KUSPAWU General Secretary Francis Wangara welcomed the state’s commitment to safeguarding workers’ rights during the transition.  

“No employee should earn less than what they are earning under the current CBA,” Wangara stated, adding that workers need assurance their livelihoods won’t be jeopardised in the restructuring process.