Gov't will revoke licenses for underperforming investors - Sugar Board CEO

This comes after the government leased four state-owned sugar factories to private millers in a bid to revive the ailing sugar industry.

The four mills, Nzoia, Chemelil, Sony, and Muhoroni, will be leased for 30 years to West Kenya Sugar Company, Kibos Sugar & Allied Industries, Busia Sugar Industry, and West Valley Sugar Company, respectively.

Chesire noted that the core reason behind the leasing is to benefit farmers, and if they fail to receive their rightful proceeds, then the investor will be kicked out. 

“Farmers come first. If investors leasing sugar factories fail to modernize mills, support cane development, or pay farmers weekly as agreed, the government will revoke their leases—simple," he noted.

"A 30-year term is only justified by the heavy capital injection expected. If they don't deliver, we’ll hand it over to those who truly prioritize our farmers.” 

Chesire added that farmers will receive their bonuses based on the amount of cane they supply.

"For every kilo of sugar processed, the lease and concession fees from the four investors will flow back to the farmers. This is not just reform; it’s a game changer," he added.

Meanwhile, the Nzoia mill takeover has been protested by Western region leaders.

The protest led by Democratic Action Party–Kenya (DAP-K) leader Eugene Wamalwa, Trans Nzoia Governor George Natembeya, and politician Cleophas Malala, drew hundreds of sugarcane farmers and residents from across the region.

They argued that the leasing was illegal and forceful, crippling a key regional economic lifeline despite a court order issued on April 23 halting the lease of the state-owned miller to controversial businessman Jaswant Rai.

The leaders vowed to maintain their clamor, insisting that the lease was unlawful and would devastate the region’s already struggling sugar sector.