Bungoma, May 13, 2025 — A wave of protests and accusations of foul play has gripped Kenya’s sugar belt following Agriculture Cabinet Secretary Mutahi Kagwe’s directive on Saturday, May 11, to lease four state-owned sugar factories—Nzoia, Chemelil, Sony, and Muhoroni—to private investors. The move, intended to revive the ailing sugar industry, has sparked outrage among Western Kenya leaders and farmers, who decry the process as opaque and a threat to local livelihoods.
The epicenter of the controversy is Nzoia Sugar Company, where Trans Nzoia Governor George Natembeya, Democratic Action Party of Kenya (DAP-K) leader Eugene Wamalwa, and other regional leaders were met with tear gas on Monday as police blocked their attempt to protest at the factory. “The journey to Nzoia Sugar Company to find the truth was disrupted by police officers who threw tear gas canisters at us and the protestors who had accompanied us to the factory,” Natembeya said. “We must get to the bottom of this for the sake of our people. The Nzoia Sugar Company is a critical economic pillar for Western Kenya, supporting over 45,000 farmers and providing livelihoods for millions directly and indirectly.”
Under the 30-year lease agreements, Nzoia has been handed to West Kenya Sugar Company, owned by businessman Jaswant Rai, while Kibos Sugar and Allied Industries Limited has taken over Chemelil. Sony Sugar is now under Busia Sugar Industry Ltd, and Muhoroni has been leased to West Valley Sugar Company. The handover of Chemelil occurred under tight security, prompting protests from Kisumu Governor Anyang’ Nyong’o, who labeled the process an “economic coup” that risks elite capture and violates constitutional transparency.
Adding fuel to the fire, President William Ruto and CS Kagwe issued a gazette notice on Monday dissolving the boards of all four mills, a move critics see as clearing the way for private control. Kabuchai MP Majimbo Kalasinga and Bumula MP Jack Wamboka have been vocal in opposing the leases, alleging the handover to the Rai group was “dubious.” Notably, Kanduyi MP John Makali, in whose constituency Nzoia lies, has remained silent, raising eyebrows among constituents.
Kakamega Senator Boni Khalwale, a long-time critic of sugar privatization, reiterated his concerns. “Two years ago, I openly differed with the Head of State over the planned privatization of sugar millers in Kenya’s sugarbelt regions, particularly in Western Kenya,” he said. “Today, two years on, we are witnessing the very scenario I foresaw, a wave of unscrupulous attempts to privatize critical sugar millers, threatening the livelihoods of thousands and the stability of a sector central to the region’s economy.”
The government defends the leases as a necessary reform to address decades of mismanagement and debt. CS Kagwe has promised to clear Sh6 billion in arrears owed to farmers by July 2025 and Sh5.6 billion in unpaid wages to workers, citing agreements with the Kenya Union of Sugar Plantation and Allied Workers (KUSPAWU). “The negotiated terms represent the best possible outcome to ensure the revival of the sugar sector,” Kagwe said in a statement, emphasizing that no public land will be sold and that the Kenya Sugar Board will reinvest lease proceeds into cane development.
However, distrust runs deep. Critics point to the Rai group’s dominance in the sugar sector and question the financial capacity of newer firms like West Valley Sugar. Farmers and workers, still reeling from unpaid dues, fear the leases prioritize private profit over public welfare. “Nzoia owes farmers Sh1.7 billion and workers Sh5.6 billion in unpaid wages,” an X post noted, reflecting widespread skepticism about the government’s promises.
As protests continue and legal challenges loom, the fate of Kenya’s sugar industry hangs in the balance. For the 45,000 farmers and millions of livelihoods tied to Nzoia and its sister mills, the leases represent either a lifeline or a betrayal.
By Robert Amalemba