Muhoroni Sugar Factory resumes operations as Kenya’s sugar industry revival gains momentum

KENYA – Muhoroni Sugar Company, one of Kenya’s key brown sugar producers, has resumed operations following extensive government-led revival efforts aimed at restoring the country’s struggling sugar sector. 

In a statement issued on August 18, the company announced that farmers, transporters, and other stakeholders could begin supplying cane to its factory for milling.  

The reopening follows months of maintenance and is part of a broader initiative to stabilize sugar production in Kenya’s Nyanza and Western regions. 

“We are happy to inform all our cane farmers, marketing bodies and transporters that we have resumed receiving cane as from today August 18 in MUSCO 2025 weighbridge after the successful maintenance,” the management said. 

The company added that farmers supplying cane over the next two months would receive payments at Zone “A” rates of KSh748 per tonne, regardless of their designated zones. Contractors, however, would continue to be compensated under standard contract terms. 

President William Ruto welcomed the reopening, describing it as a significant milestone in the revival of Kenya’s sugar industry. He expressed confidence that within two to three years, the country would produce sufficient sugar to meet local demand and establish itself as an exporter. 

“Watch this space, in just two or maximum three years, Kenya will be an exporter of sugar. We have been looking for safeguards, we are going to change the sugar sector,” the President said. 

The factory’s reopening comes after the government leased four state-owned mills—Nzoia, Sony, Chemilil, and Muhoroni—in May, as part of wider reforms to improve efficiency and profitability.  

Earlier in January, the President presided over the release of a Kes150 million bonus payment to Mumias Sugar farmers, the first such payout in the industry, which he said underscored the reforms’ early success. 

“With a record 832,000 tonnes of sugar produced last year, Kenya is on course to attaining surplus production and commence regional exports by 2026, turning sugarcane cultivation into a viable and rewarding venture,” he said. 

Meanwhile, the government has directed the management of the leased factories to issue redundancy notices in compliance with Section 40 of the Employment Act, 2007, and existing Collective Bargaining Agreements.  

These notices must detail reasons for termination, outline redundancy entitlements, and be copied to County Labour Officers. 

Authorities further assured affected employees that all dues and lawful benefits will be fully settled in line with statutory provisions. 

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