West
Kenya Sugar Company, under the leadership of Chairman Jaswant Rai, has
officially taken over operations at Nzoia Sugar Factory.
The
handover was conducted by the board chair Alfred Khang'ati, marking a new chapter
for the struggling mill.
As
part of its commitment, West Kenya Sugar will invest Sh5.6 billion to
rehabilitate and modernise the factory to ensure efficient operations.
“The
company plans to undertake extensive cane development in the region to support
sustained production. Farmers supplying sugarcane to the mill will also benefit
from timely payments, to boost morale and productivity in the sector,” he said.
Chairman
Rai emphasised that the welfare of workers will be a top priority and pledged
close collaboration with the local community to ensure that all stakeholders benefit
from the revitalisation.
Addressing
previous concerns about regulatory compliance, Rai reaffirmed his company’s
dedication to operating within the law.
He stated that the firm will uphold all legal
standards and maintain transparency in its operations.
Agriculture
and Livestock Development CS Mutahi Kagwe said the government has officially
handed over the operations of Nzoia, Chemelil, Sony, and Muhoroni sugar
companies to private millers under a 30-year lease.
The
leasing model, Kagwe explained, was a departure from the previously proposed
privatisation route that was rejected after further public participation and
legislative review.
He
said plan now is to let private operators bring in capital, expertise, and
efficiency, while the government focuses on oversight and accountability.
“Stakeholders
in Kisumu, Parliament, and even the courts agreed—leasing was the right model.
This is not just about turning profits; it's about restoring dignity to the
thousands of families that depend on sugar farming and processing,” he said.
Kagwe
said the leasing is a product of extensive stakeholder engagement dating as far
back as 2015.
Kagwe
said West Kenya Sugar Company will now run Nzoia Sugar; Chemelil has
gone to Kibos Sugar and Allied Industries; Sony Sugar will be run by Busia
Sugar Industry Ltd; while West Valley Sugar Company has taken over Muhoroni.
“The
sugar sector has drained billions from taxpayers over the years. Now it’s time
we let strategic investment drive its transformation,” Kagwe added.
As
the four millers settle into their new roles, the government reassured farmers,
workers, and the public that it remains firmly committed to supporting the
sector’s revival.
