- Sony Sugar could lose its 4,000 acre estate over an alleged Ksh862 million bank debt
- Farmers are urging the government to intervene before the auction notice expires on August 20
- Representatives warn selling the estate could hurt farmers and the wider Migori community
South Nyanza Sugar Company (Sony) could lose its 4,000 acre nucleus estate after farmers’ representatives raised concerns over a notice by Cooperative Bank of Kenya to auction the company’s property over an outstanding Ksh862 million loan.
South Nyanza Sugar Cane Farmers’ Secretary General Argwings Adongo said the company owed the bank more than Ksh862 million as of July 2026. The bank had issued an earlier notice over the debt in July 2025, but the company failed to settle it.
A fresh notification of sale, dated July 14, 2026, gave Sony 40 days before the property could be sold. The notice was due to expire on August 20.
“When Sony Sugar was being leased to Busia Sugar Industry Ltd in 2025, the government was aware of any existing loans that were supposed to be settled before the leasing process,” Adongo said.
He called on the national government to intervene by settling the debt and ensuring the company continues operating for the benefit of Migori County residents.
READ ALSO:
Global payment firms restrict money transfer services to Kenya
South Nyanza Sugar Company farmers’ chairman John Omolo said Awendo residents donated the land occupied by the nucleus estate in the 1970s to enable the sugar mill’s establishment.
“Sony is our property and sits on our land, and it is equally important to safeguard its existence by taking good care of its lands and any other property,” Omolo said.
He warned that disposing of the estate would have implications beyond the sugar company because of its importance to farmers and the wider community. Omolo urged the company to explore alternative sources of funds to clear the debt, and asked the national government to help settle the outstanding amount.
Another farmers’ representative, Odondi, said the company had also failed to act on an earlier notice the bank issued in August 2025.
“Our farmers are against the sale of any property belonging to South Nyanza Sugar Company, especially the nuclear plantation that was donated by their forefathers,” Odondi said.
He called on management to give stakeholders clear information on the debt and the proposed auction.
The farmers’ representatives also urged county leaders to work with the national government and company management to find a lasting solution.
By Jonathan Mwinzi
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
