Kenya confirms full resumption of leased sugar mills by end of October
Kenya Sugar Board reports steady progress as four state-owned sugar mills leased to private firms near full operations.
KENYA – The Kenya Sugar Board (KSB) has announced that all four state-owned sugar mills leased to private investors will be fully operational by the end of October 2025.
According to KSB Chairman Nicholas Gumbo, two of the mills — Muhoroni and South Nyanza (SoNY) Sugar Companies — are already operational and producing sugar.
Speaking during an inspection tour at Chemelil Sugar Company, Gumbo confirmed that the remaining two mills, Chemelil and Nzoia, are in the final stages of rehabilitation and are on course to begin milling by the end of next month.
“The progress is commendable. Everyone involved is working within the set timelines to ensure full resumption of operations,” he said.
Chemelil Sugar 2025 Director Jassi Chatthe echoed this optimism, noting that the factory is undertaking a phased rehabilitation of its machinery, with the first phase nearly complete. He added that upgrades will continue until the entire plant is fully revamped.
Addressing concerns over delayed salaries, Gumbo stated that the government is actively handling the issue. He emphasized that decades of mismanagement had weakened the mills and urged workers to be patient as recovery progresses.
Gumbo also reported significant improvements at the two mills already in operation. Before leasing, the mills processed about 7,000 tonnes of cane per week; they are now crushing 11,000 tonnes weekly under private management.
He credited the increase to greater efficiency and better oversight under the leasing model, which he described as crucial for revitalizing Kenya’s sugar industry and supporting farmers.
He noted that towns around the operational mills are experiencing economic revival, with more money circulating locally. Previously, the mills generated only Kes 20–30 million per month, while salary obligations exceeded Kes 100 million, creating large arrears. Under the new model, the mills are now covering salaries and generating profits.
The government handed over the four state-owned sugar factories to private firms under a 30-year lease agreement. West Kenya Sugar Company will manage Nzoia, Kibos Sugar and Allied Industries will oversee Chemelil, Busia Sugar Industry Ltd will run Sony Sugar, and West Valley Sugar Company will manage Muhoroni.
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