The long, drawn-out process of leasing government sugar factories has concluded, and the new operators have moved in seamlessly.

The government has been trying unsuccessfully to privatise the sugar factories since the 90s. At that time, they were all in operation but have been grounded and bankrupted over the years. The impact on the economy of Western Kenya and the livelihoods of millions of farmers and workers has been devastating.

Under leasing, the sugar companies will start reversing this rot. The lessors will inject billions in both investments and leasing fees.

Agriculture Cabinet Secretary Mutahi Kagwe outlined the benefits from the lessors. Nzoia Sugar will get investment worth Sh5.7 billion from West Kenya Sugar. Sony Sugar will get an investment of Sh1 billion from Busia Sugar, while Kibos Sugar will invest Sh4.5 billion in Chemelil Sugar. West Valley Sugar will invest Sh1 billion in Muhoroni. Very substantial investments.

The government will pay arrears to farmers and workers starting with Sh1.5 billion in July 2025, and another Sh1.17 billion in quarterly tranches.

Further, the lessors will pay an initial goodwill of a total of Sh521 million, and annual leasing fees thereafter. The leasing transaction has seen the government settle the huge arrears the factories owed to banks, suppliers, farmers and employees, releasing them to begin business shipshape once again. The factories start paying taxes to the government immediately. Political interference is over since there will be no more government-appointed CEOs and directors.

The conclusion of this exercise means that all government sugar companies, including Mumias Sugar, have private sector investors ready to invest the billions required to revive the Western sugar sector. Their employees and farmers attached to these factories will start earning a livelihood again after almost two decades in which these factories lay dead. Long suffering suppliers will restart delivering goods and services running to billions of shillings every year. Hinterlands of the factories will boom

So what is all the noise about? The government has been making it clear for decades that it has no money to revive the sugar factories, especially because, unlike Kenya Airways, they are not strategic industries. Politicians have remained adamant, holding the process hostage, and keeping their people wallowing in poverty for decades. Remember, their monthly salaries have continued uninterrupted throughout.

Western politicians argue that the leasing will make farmers and workers suffer. Really? More than the suffering they have endured as their factories lay dead for years with no hope of revival? Further, the lessors in the five sugar millers are all big, well known, and highly successful sugar millers in Kenya. Why do Western leaders hate Kenyan investors?

Other stakeholders must speak out. They cannot allow self-seeking politicians to continue determining their fate to their detriment.

The new investors should mark a new beginning for the people and economies of Western Kenya. Too much time has been lost in endless, meaningless squabbling. It is time for the sugar factories to roar into life once again.

gathukara@gmail.com