Gov’t leases four sugar companies as it completes 30-year lease agreement

The Government has  completed a 30-year lease agreement, outlining  how the  four state owned sugar factories will be leased out to private entities.

In a press statement agriculture cabinet secretary Mutahi Kagwe says that following the broad-based consultations, the following companies have been awarded a 30-year lease for the operation of the four sugar factories:

The statement says that Leasing of Nzoia Suga Company has been awarded to West Kenya Sugar Company in  Kakamega while Leasing of Chemilil Sugar Company has been awarded to Kibos Sugar and Allied Industries in Kisumu

It further says that leasing of Sony Sugar Company has been awarded to Busia Sugar Industry of Busia

The Leasing of Muhoroni Sugar Company, it says, has been awarded to West Valley Sugar Company in Kericho

‘I would like to assure the public and all stakeholders that the negotiated terms represent the best possible outcome to ensure the revival of the sugar sector. ‘The statement says.

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The Ministry, the statement says remains fully committed and ready to address any concerns that may arise.

It says due process was followed in the lead up to the selection of leasing as a viable model for the transformation and rehabilitation of the 4 sugar factories as earlier guided by Parliament and the Cabinet.

The statement says the National Assembly vacated the privatization model approved in 2015. It approved the leasing model as well as the cabinet decisions to write off the debts owed by the sugar companies.

It further says the National Assembly further rejected the proposal to merge Chemelil and Muhoroni sugar companies.

The Ministry, according to the statement, further wishes to reassure all stakeholders that no public land will be sold or acquired under the leasing agreements. All assets belonging to the four sugar companies, including land, will remain the property of the national government.

By Fredrick Odiero

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