Strategic investors have started evaluating state-run sugar facilities in Nyando and Awendo sugar belts, preparing for the long-awaited leasing deal.

Investors, including those from South Africa, Brazil, and India, visited Chemelil, Muhoroni, and Sony Sugar factories to assess assets after the government decided to lease them to the private sector.

The leasing initiative follows the government’s successful clearance of the sugar industry’s substantial Sh117 billion debts, aiming to attract new investors and breathe new life into the struggling sector.

Debt write-off

Principal Secretary for the State Department for Agriculture, Dr. Kiprono Ronoh, urged farmers to update their bank records for pending arrears.

The government swiftly moved forward with leasing after Parliament approved the debt write-off, signalling a fresh effort to revitalize the financially burdened sugar factories.

Cane farmers support the government’s effort to lease sugar factories, saying it as a positive step to revive the industry. Governors from sugarcane-growing regions have urged transparency in the leasing process, represented by Migori Governor Ochillo Ayacko, who called for transparency in the leasing process.

“We are only hearing of leasing the factories with some of the strategic investors already going around to see the firms,’’ said Ayacko, demanding for the list of the investors.

Ayacko also raised concerns about pending bills for workers, amounting to approximately Sh1.2 billion. He emphasizes the need for transparent arrangements regarding employee payments if the factories are leased.

Despite their support for the revitalization efforts, farmers are urging the expedited resolution or termination of Miwani cases in court to facilitate a smooth transition to the leasing model.

Led by the Kenya National Federation of Sugarcane farmers, Secretary General Killion Osur told farmers to stop derailing the process through litigations, which will only hamper the good move to revitalise the sector.

However, farmers want Miwani cases in courts terminated or expedited to allow it to be part of the transition to a leasing model likely to revitalize the sugar sector Firms due for leasing are Nzoia, Muhoroni, Chemelil. Miwani was left out in the advert calling for bids to lease. This is due to an active court case.
with some of the strategicinvestors already going around to see the firms,’’ he said Ayackowants to know the list of the interested investors in the Sony Sugarfactory listed for leasing.

”Weknow that the state wants to lease the firms. But is it wrong for usto know who the investors are and who will pay the worker’s debts, “heposed.Ledby the Kenya National Federation of Sugarcane farmers, SecretaryGeneral Killion Osur, farmers termed the move as positive.

“We arehappy with the idea because the industry has been run down for twodecades sinking into debts and making no profits, ’he said He toldfarmers to stop derailing the process through litigations, which willonly hamper the good move to revitalize the sector.

However,farmers want Miwani cases in courts terminated or expedited to allowit to be part of the transition to a leasing model likely to revitalizethe sugar sector Firms due for leasing are Nzoia, Muhoroni, Chemelil. Miwani was left out in the advert calling for bids to lease. This isdue to an active court case.