Kenya moves to lease four sugar factories with stakeholder backing
Leasing plan gains support from unions and farmers as government pledges to safeguard jobs and clear pending dues.
KENYA – The Kenya National Federation of Sugarcane Farmers and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAWU) have expressed support for the government’s plan to lease out four state-owned sugar factories: Nzoia, Chemilil, Muhoroni, and Sony.
The leasing process is currently being coordinated by a committee led by Kenya Sugar Board Chief Executive Officer Jude Chesire.
The committee, alongside the two unions, has already engaged Agriculture and Livestock Development Cabinet Secretary (CS) Mutahi Kagwe, who assured stakeholders that no final decisions will be made without consulting farmers and workers.
According to Kagwe, the leasing will only proceed after addressing all outstanding issues affecting both groups.
“Next week I have scheduled meetings with several stakeholders, including Members of Parliament, the sugar caucus, and county governors from the affected regions. We must involve the local leadership, unions, and farmer representatives. This process will not be conducted arbitrarily,” Kagwe stated.
He further emphasized that all entities seeking to lease the factories must undergo a thorough vetting process and meet government-set conditions.
Kagwe also confirmed that the National Treasury had committed to clearing all pending salary and supplier arrears before the lease agreements are finalized.
Kilion Osur Anyango, the National Secretary General of the Kenya National Federation of Sugarcane Farmers, reiterated that farmers had already expressed their preference for leasing during public consultations held by the Sugar Taskforce led by former Agriculture CS Peter Munya and ex-Kakamega Governor Wycliffe Oparanya.
“Farmers made it clear that they oppose privatization. From our interactions with private millers, they pay farmers weekly without delays. Leasing will allow our farmers under these public factories to benefit similarly,” Anyango said.
He urged the Kenya Sugar Board to standardize weighbridges across all factories to promote fairness and transparency in weighing cane.
Anyango also appealed for the establishment of a Sugar Arbitration Committee to resolve leasing-related legal disputes outside the courts, noting that ongoing litigation has slowed down the process.
KUSPAWU, on its part, called on the government to ensure that all lessees uphold existing Collective Bargaining Agreements (CBAs) between workers and factory management.
Union officials supported the proposed one-year transitional period in which no jobs would be lost while the lessees evaluate the factories’ labor requirements.
To further support the sugar sector’s revival, CS Kagwe confirmed that the Ministry has finalized new regulations to operationalize the Sugar Act, laying a legislative foundation for sustainable reform.
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