Mps slam gov’t over hasty decision, lack of public participation on sugar factories lease

Six Kisumu County Members of the National assembly have slammed the national government for hastily leasing out sugar factories without public participation and local stakeholders’ engagement.

They have demanded immediate revocation of the 30-year lease of Muhoroni, Chemelil, and Miwani Sugar Mills through a Presidential Executive Order.

By rejecting the opaque leasing, the legislators from the sugarcane growing zones are calling for the return of the sugar factories and their assets to the good people of Kenya, until a wide and exhaustive consultation is completed.

“The current drivers of the leasing plan step aside, and new modalities for any future planned leasing will be discussed, incorporating transparency, accountability and materials disclosures of all bid processes, events and directions,” they stated during a press conference held at a Kisumu hotel yesterday evening.

Led by Seme MP James Nyikal, they further demanded that the Cabinet Secretary for Agriculture and Livestock Development (CS), Mutahi Kagwe, should appear for an open and comprehensive dialogue with the regional leaders, sugarcane farmers and workers at the sugar companies.

“This will assist in making pre-leasing agreements in diverse areas of concern to us. He should also make public the current leasing dossiers attached to the present process for public, national, county and parliamentary evaluations,” they said.

ALSO READ:

CS Oparanya backs leasing of state-owned sugar factories as new strategic managers take over

On May 10, the government completed the leasing of four state-owned sugar factories (Chemelil, Muhoroni, Nzoia and Sony) to private millers. They are set to be managed by Kibos Sugar and Allied Industries, West Valley Sugar Companies, West Kenya Sugar Companies, and Busia Sugar Industries, respectively.

In a recently issued statement, CS Kagwe said the four underwent a competitively procure process. “This will aid in reviving the ailing sugar sector by injecting the much-needed capital,” CS said.

The government further signed agreements with sugarcane farmers and the workers’ union by pledging to offset Sh0.5 billion in arrears for cane delivered since 2024. The sugarcane farmers’ payment due date will be in July 2025.

Inside details of the Memorandum of Understanding with the Kenya Union of Sugarcane Plantation and Allied Workers (KUSPAW) disclose that the total rising amount owed to workers is Sh5.6 billion.

Out of the rising debt, Sh600 million was paid in 2024, and a further settlement of Sh1.5 billion will be made in July 2025.

Additionally, Sh1 billion will be released before the sugar companies’ takeovers in May 2025.A further Sh1.17 billion will be paid every quarter until June 2026. Over the weekend the managements of the four mills were instructed to facilitate handover and takeover of the new leases.

ALSO READ:

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

Speaking during the presser, the legislators Onyango K’Oyoo (Muhoroni), Dr Joshua Oron (Kisumu Central), Aduma Owuor (Nyakach), Shakeel Shabbir (Kisumu East), and Ruth Odinga (Kisumu Women Rep), termed the lease as an affront to the rights of residents of Nyando Sugar Belt Zones and a warfare to decimate a whole community.

The leases, they noted, entrench negative monopolies and in competencies, not least from the apparent records of the alleged winning bidders.

“It flouts the constitutional and statutory provisions (Section 114 of the County Government Act) which stipulate that the county governments must be involved in the control of the agriculture sector, public land, infrastructure and the overall demographic outlay of residents in the county,” they said.

They also warned that if their demands aren’t met, they will mobilize the local residents for mass action to fulfill their desire.

“The leasing agreements are like a forced marriage that has not considered the interests of current factory workers, both temporary and permanent, and any frameworks being signed by trade unionists to that effect have neither been representative,” they concluded.

By Fredrick Odiero.

Sharing is caring!