Kenya ordered to disclose sugar company lease records

KENYA – The Office of the Ombudsman has issued a binding order directing Agriculture Principal Secretary Kiprono Ronoh to release all records related to the leasing of four state-owned sugar mills within 21 days.  

The directive warns that non-compliance could prompt criminal prosecution as provided under the Access to Information Act. 

In a notice released on Monday, the Commission said the Agriculture Ministry must furnish the requested documents following a formal access-to-information application lodged by a citizen identified as Mr AO. The applicant submitted his request on July 29, 2025, but received no response from the ministry. 

According to the Ombudsman, the request sought letters of award, complete lease agreements and all criteria used in selecting the private firms contracted to run Muhoroni, Nzoia, Chemelil and Sony Sugar factories.  

The Commission added that while some sections of the documents may contain restricted information, the law still requires the ministry to provide redacted versions. 

“The information requested may contain elements subject to limitations under Section 6(1). Therefore, a redacted version will suffice,” the notice stated. 

The Commission noted that the Agriculture Ministry failed to respond within the mandatory seven-day period after acknowledging receipt of the application on September 5, 2025.  

Acting under Sections 22 and 23 of the Act, the Ombudsman has now compelled the PS to release the documents and demonstrate full compliance within 21 days. The notice further warned that failure to adhere to the directive would lead to a recommendation for prosecution under Section 28. 

The development comes shortly after Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe assured Parliament that all investments made by private operators in the four mills will revert to the government once the 30-year concession term expires.  

The CS said the long-term leases, finalized in May, represent a new model intended to attract private capital while safeguarding public ownership of state assets. 

Under the arrangements, South Nyanza (Sony) was leased to Busia Sugar Industry Ltd, Nzoia to West Kenya Sugar Company Ltd, Chemelil to Kibos Sugar & Allied Industries Ltd, and Muhoroni to West Valley Sugar Company Ltd. 

Kagwe told lawmakers that the government deliberately adopted a structure aimed at restoring efficiency in mill operations and strengthening support to farmers. He emphasized that the leases were based on performance and not permanent transfers of ownership. 

Investors will pay annual lease rents of KES 40,000 (US$309.24) per hectare for Chemelil, Muhoroni and Sony, and KES 45,000 per hectare for Nzoia. The agreements also include concession fees of KES 4,000 (US$30.92) per tonne of sugar and KES 3,000 (US$23.19) per tonne of molasses, as well as a one-off goodwill payment equivalent to a year’s rent. 

Kagwe explained that the leased assets: covering land, buildings, machinery and plant, were treated as a unified operational package, noting that the nucleus estates and standing cane were not separately valued. 

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