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Chaos mars handover of State-owned sugar mills
Chemelil Sugar workers and the Kenya Union of Sugar Plantation and Allied Workers, Chemelil branch, protest against the lease of the company to Kibos Sugar on 29 April 2025.
The government’s handover of State-owned sugar mills to private investors under new 30-year lease agreements began over the weekend amid widespread resistance from political leaders, workers, and local communities.
The transition, part of a broader government effort to revitalise the struggling sugar sector, has faced backlash for what critics say is a lack of stakeholder engagement.
Agriculture Cabinet Secretary Mutahi Kagwe, seeking to fast-track the process, directed that four public sugar mills be handed over to the new lessees last Saturday.
“Please arrange to hand over reports and documents to the lessees at the respective institutions’ mill headquarters. You are additionally expected to facilitate the process in person,” said CS Kagwe in a circular issued ahead of the handover.
But resistance flared almost immediately, most notably at Nzoia Sugar Company in Bungoma County, where workers protested the takeover by tycoon Jaswant Rai.
Leading the opposition were Kabuchai MP Majimbo Kalasinga and Bumula MP Jack Wamboka, who alleged that the Rai family had underperformed in other enterprises.
“The Rai family is behind the woes that plagued Mumias Sugar Company, and they have nothing to show since taking over the management of Webuye Pan Paper Mill in 2020,” said Mr Kalasinga.
In anticipation of resistance, Kibos Sugar and Allied Industries Limited arrived at Chemelil Sugar Company’s premises accompanied by a contingent of police officers to oversee a tense handover.
Workers had previously demonstrated against the move, fearing for their jobs and the future of the mill.
“Our movements have been restricted, and the door locks are being changed. We don’t know what is next for us. We feel like prisoners,” said one worker, who spoke anonymously due to fear of reprisal.
Kisumu Governor Prof Anyang’ Nyong’o said the lessees for Chemelil and Muhoroni have no experience managing such companies.
“We firmly oppose this opaque lease plan, which ignores the social fabric, existing infrastructure, and public interests in sugar belt sub-counties.
“The plan threatens to dismantle community livelihoods and invites monopolistic exploitation,” he cautioned.
At Sony Sugar Company, tension simmered as Busia Sugar Industry officially took over management.
Workers, wary of the new leadership, spoke in hushed tones. The situation escalated when Sony Sugar Managing Director Martine Dima interdicted acting Head of Agriculture Boniface Odhiambo for allegedly inciting unrest.
“You have been impeding the handover process by mobilising stakeholders, including sugar distributors, contractors, and staff to create mayhem and a hostile environment for the incoming investor,” Mr Dima stated in the interdiction letter.
Adding to the upheaval, President William Ruto and Agriculture CS Kagwe issued a special gazette notice on Monday announcing the dissolution of all boards of management for the affected mills.
Among those removed were John Nyambok (Chemelil), Jared Opiyo (Sony), and Alfred Khangati (Nzoia), all of whom had been appointed by President Ruto as chairmen. The appointments of all board members were also revoked.
Muhoroni Sugar Company Receiver Manager Harun Kirui handed over the company to West Valley, which is owned by Kipchimchim Group.