Kenya’s plan to lease four struggling state-owned sugar factories received a significant boost on Wednesday after two key unions representing sugarcane farmers and industry workers publicly endorsed the initiative. The move is being hailed as a turning point in efforts to revive the ailing sugar industry, which has been bogged down by decades of mismanagement, political interference, and systemic inefficiencies.
During a consultative meeting in Nairobi convened by Agriculture and Livestock Development Cabinet Secretary Senator Mutahi Kagwe, both the Kenya National Federation of Sugarcane Farmers and the Kenya Union of Sugar Plantation and Allied Workers (KUSPAWU) pledged their support. The meeting was also attended by representatives from the Kenya Sugar Board and the National Treasury.
The factories identified for leasing include Nzoia, Chemelil, Muhoroni, and South Nyanza (Sony) Sugar. These mills have long struggled with outdated machinery, high operating costs, and crushing debts, despite repeated government bailouts.
Stakeholder Engagement at the Core
Cabinet Secretary Kagwe emphasized that the leasing process would be transparent and participatory. He assured union leaders and farmers that the process would involve all relevant stakeholders and would not be implemented unilaterally.
“We cannot do this arbitrarily. We must include the leadership on the ground, the unions, and the farmers’ representatives. Nobody will be allowed to take over the factories before being properly vetted,” Kagwe said.
He also announced upcoming meetings with sugar belt Governors, Members of Parliament, and other industry stakeholders, reinforcing the government’s commitment to building consensus. Additionally, Kagwe revealed that new regulations to operationalize the Sugar Act have been finalized, aiming to strengthen governance and regulatory oversight in the sector.
The emphasis on inclusivity is a strategic response to the criticisms leveled against previous privatization efforts, which were seen as lacking transparency and stakeholder involvement. Many of those initiatives failed or were stalled due to public opposition and legal challenges.
Farmers Call for Fairness and Consistency
Kilion Osur Anyango, Secretary General of the Kenya National Federation of Sugarcane Farmers, praised the leasing plan, asserting that it aligns with long-standing farmer preferences.
“Leasing offers a better alternative, especially when we consider how private millers consistently pay farmers on a weekly basis without delays,” Anyango noted.
He called on the Kenya Sugar Board to standardize weighbridge operations across all mills to address persistent complaints about inaccurate cane weight measurements. Anyango also advocated for the establishment of a Sugar Arbitration Committee to help resolve disputes efficiently and avoid drawn-out court battles.
The farmers have historically faced delayed payments, poor pricing mechanisms, and exploitation through manipulated weighbridge systems. Addressing these concerns, Anyango stressed, is essential to restoring farmers’ confidence in the industry and encouraging them to continue sugarcane cultivation.
Workers Demand Job Security
Echoing the farmers’ sentiments, KUSPAWU Secretary General Francis Wangara emphasized the importance of protecting worker rights throughout the leasing process. He lauded the government’s proposal to offer a one-year grace period during which no employee would be laid off.
“We are encouraged by the proposal. However, we insist that no worker should earn less than what they currently receive under the prevailing Collective Bargaining Agreements (CBAs),” Wangara stated.
He further stressed that new management teams must be held to existing labor agreements to ensure continuity and fairness in employment terms.
The sugar sector remains one of the largest formal employers in western Kenya. Disruptions in employment due to mismanagement and factory shutdowns have had a devastating impact on local economies. The workers’ union is therefore pushing for safeguards that not only protect current employees but also promote sustainable job creation in the long term.
Vetting of Interested Firms Underway
The Kenya Sugar Board, under CEO Jude Chesire, has formed a technical committee tasked with vetting the more than 20 companies that have expressed interest in leasing the factories. According to reports from The Standard, only firms that meet strict financial, technical, and managerial criteria will be considered.
The vetting process is expected to be rigorous. Companies must demonstrate not only their ability to operate efficiently but also a clear plan for investing in infrastructure, maintaining fair labor practices, and ensuring timely payment to farmers.
The government aims to complete the selection process within a few months, with the objective of ensuring a smooth transition that boosts factory productivity without compromising farmer and worker rights. Stakeholders have emphasized that any attempt to fast-track or politicize the leasing could undermine its credibility and outcomes.
A Sector in Decline
Kenya’s sugar industry, once a pillar of the national economy and a major employer in the western region, has seen a sharp decline over the past two decades. Frequent factory breakdowns, dilapidated infrastructure, and ballooning debts have rendered many mills commercially unviable.
The country has increasingly relied on imported sugar to meet local demand, hurting domestic producers and exposing consumers to price volatility. Sugarcane farming has become less attractive to small-scale farmers, many of whom have switched to more profitable crops or abandoned farming altogether.
Previous attempts to privatize the sector were met with resistance from farmers and workers, who feared job losses and exploitation. The leasing model, however, is viewed by many stakeholders as a balanced approach that brings in private expertise and capital while maintaining government ownership and oversight.
The potential benefits include improved operational efficiency, better farmer payouts, investment in modernization, and improved product quality. However, concerns remain about long-term sustainability, government oversight, and ensuring that community interests are not sidelined.
The Road Ahead: Opportunities and Challenges
As the leasing initiative gains traction, several challenges must be addressed to ensure its success. These include:
- Transparent Vetting: Ensuring that the selection of lessees is based on merit and capability, not political or commercial favoritism.
- Infrastructure Modernization: Investing in new equipment and technology to replace aging machinery and enhance factory efficiency.
- Farmer Engagement: Building trust among farmers through timely payments, transparent pricing mechanisms, and inclusive governance structures.
- Labor Rights: Protecting workers through enforceable agreements that guarantee job security, fair wages, and safe working conditions.
- Policy Alignment: Harmonizing national and county policies to avoid regulatory conflicts and create an enabling environment for private sector participation.
Conclusion
With support from both sugarcane farmers and plantation workers, Kenya’s leasing plan for its ailing sugar factories appears to be gaining momentum. Success, however, will depend heavily on the integrity of the vetting process, the competence of the selected lessees, and sustained engagement with local communities.
This new chapter in the sugar sector offers a unique opportunity to correct past failures, stimulate economic growth in rural areas, and make Kenya’s sugar industry competitive again. But it will require political will, institutional discipline, and ongoing dialogue among stakeholders.
For many residents of Kenya’s sugar belt, the stakes are high. The hope is that this new model will finally unlock the long-promised revival of the sugar sector, restoring livelihoods and boosting local economies that have long depended on this once-thriving industry.