While speaking during the Madaraka Day celebrations held at Raila Odinga Stadium in Homa Bay on Sunday, June 1, 2025, President William Ruto addressed the ongoing controversy surrounding the lease status of state-owned sugar factories.

He clarified that the government has not sold any of the public sugar companies but instead opted to lease them to private investors in a strategic move aimed at restoring efficiency and profitability in the sugar sector.

President Ruto specifically mentioned the leasing of Sony, Chemelil, Muhoroni, and Nzoia sugar factories.

He defended the government’s decision, stating that the goal is not to privatise or offload the assets.

Ruto dismisses claims of a sugar factory sale, saying they are leased, but rather to bring in private players who can modernise the ageing infrastructure.

 According to Ruto, most of the factory machinery is outdated, having been in operation for over 50 years without substantial upgrades. This has limited production capacity and hurt farmers’ earnings.

Ruto’s defence

He lamented that due to old technology, the factories were only producing 1 tonne of sugar from 20 tonnes of cane, effectively shortchanging farmers and undermining their hard work.

The new arrangement, he said, is meant to reverse this trend by bringing in modern milling systems.

 “The recent competitive leasing of four state-owned factories – Nzoia, Muhoroni, Chemelil, and Sony – is another strategic step to inject efficiency, restore profitability, and safeguard farmers’ livelihoods.

“We plan to modernise the mills and ensure prompt payment of farmers, workers’ salaries and wages, and transform these once-struggling factories into productive and sustainable enterprises,” Ruto said.

The president further noted that delayed salaries and unproductive operations had become the norm in these factories, often requiring government bailouts funded by taxpayers.

He admitted that the government itself had struggled to manage the mills effectively, hence the decision to hand them over to the private sector, but assured Kenyans that not even the assets belonging to the companies had been sold.

“The government of Kenya has acknowledged its limitations in the management of these mills. Let it be clearly understood that neither the factories nor their assets, including land, have been sold. They remain public property leased under strict terms to private sector players,” he added.

According to President Ruto, the ultimate aim is to benefit farmers, workers, and the surrounding communities, ensuring that they enjoy a stable and thriving sugar industry that is both sustainable and productive.

This comes days after public uproar over the Rai Group’s takeover of Nzoia Sugar, which saw leaders from the region join farmers in protesting the move and demanding accountability.

Police used force to block them from accessing the Nzoia Sugar mill.