Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe address journalists during the opening of the UN food system summit (UNFSS+4) Africa region preparatory meeting held in Gigiri, Nairobi on May 5, 2025.
Agriculture Cabinet Secretary Mutahi Kagwe has been summoned by senators over the controversial leasing of four public sugar mills.
The development comes at a time when the plan continues to face growing opposition over how it was implemented.
MPs and locals drawn from the sugarcane growing areas of Nzoia, Chemelil, Muhoroni, and Miwani have been up in arms over the 30-year leasing plan, calling it opaque and rushed.
CS Kagwe is wanted before the Senate Trade, Industrialisation and Tourism Committee to shed more light on what transpired before the leasing of the sugar mills.
He is expected to furnish the committee chaired by Kwale Senator Issa Juma with a copy of the lease agreements between all the public sugar mills and the private companies, proof of stakeholder engagement, and public participation before the signing of the leases.
In addition, the minister will need to provide a complete list of assets belonging to the public sugar mills and a list of debts owed and the role played by the privatization commission during the process of leasing out the public sugar companies.
Nzoia Sugar Company has been leased to West Kenya Sugar Company, Chemelil Sugar Company to Kibos Sugar, and Allied Industries Limited; Sony Sugar will be managed by Busia Sugar Industry, while Muhoroni Sugar has been leased to West Valley Sugar Company.
Senator Juma said the committee wants the minister and the Privatisation Commission boss to submit relevant information regarding the leasing of the four public sugar mills.
The summons come barely a day after some Western Kenya MPs threatened a court action to halt the Nzoia Sugar company lease.
The leaders led by MPs Majimbo Kalasinga (Kabuchai), Tindi Mwale (Butere), and senators Edwin Sifuna (Nairobi), Godfrey Osotsi (Vihiga), and Okiya Omtatah (Busia) accused the Ministry of Agriculture of flouting court orders, sidelining stakeholders, and leasing a public asset through a process shrouded in secrecy.
The legislators want to know why President William Ruto's administration opted for the leasing plan instead of strengthening public ownership of the struggling firms through the appointment of capable management.
Raising concern, Senator Omtatah wanted to know whether adequate public participation and stakeholder consultation were undertaken before the decision.
He questioned whether the leasing of the sugar mills approach is in the best social-economic interest of the local communities.
“What is the impact of leasing out the sugar companies on farmers, employees, and local economies, and the safeguards in place to protect public assets and ensure continued service delivery and economic empowerment in sugar-growing regions?” posed Mr Omtatah.
Senator Sifuna argued that the process is being undertaken in an opaque manner, questioning the rush to lease the sugar mills despite ongoing litigation as well as a lack of effective public participation.
He said that stakeholders in the sector have to be kept informed to understand what is being done.
The ODM Secretary-General observed that in Bungoma, for instance, the farmers were clear that when it comes to Nzoia Sugar, the government will invest in upgrading the machinery to improve efficiency, instead of leasing out the sugar mill or selling it to any third party.
“If you are leasing out the sugar mills, and the person is not interested in reviving the mills, but is only after the land owned by that particular sugar plant, there is going to be a problem," said Mr Sifuna.
"Nzoia Sugar has the biggest nucleus, and the people of Bungoma will not allow that land to be taken because they consider it their land," he added.
Senator Osotsi said that people are concerned about the plan to lease Nzoia Sugar Company, adding that there was no adequate stakeholder engagement or public participation.
“The process was done opaquely. Even if the Government has good intentions on doing something, can they involve the people and leaders of that region, instead of just waking up and saying they want to lease Nzoia Sugar Company?” posed Mr Osotsi.
He argued that the speed at which the whole process is being undertaken is sending many negative signals to the people, especially in the sugarcane growing zones.
“I am among the people who believe that privatisation is not the solution to the problem we are having in the sugar industry. Mumias Sugar Company was doing well before privatisation. The problems started increasing upon privatization of Mumias Sugar Company, where the management could not listen to anyone,” said Mr Osotsi.
“The solution is not the privatisation of sugar companies. I wonder why the Government keeps interfering with the sugar industry," added the ODM deputy party leader.
Nandi Senator Samson Cherargei added that senators want accountability, public participation, and dispensation of court processes that are already in place.
He said they are willing to engage with the Ministry of Agriculture for a conversation aimed at bettering the future of sugarcane farmers in Kenya, adding that Nandi should be part of leasing of sugar mills such as Chemelil Sugar Company Limited and West Kenya Sugar Factory.
“I request the Government not to be in a hurry because there will be a lot of legal hurdles that might affect this process," he said.
Kakamega Senator Boni Khalwale argued that a matter affecting the livelihoods of eight million Kenyans directly cannot be conducted through a sham public participation involving only the Bungoma governor and the speaker of the National Assembly in the case of Nzoia Sugar Company.
He said that the decision to lease Nzoia Sugar Company should be rethought and that the people must participate.
"Consulting those two leaders does not amount to public participation over Nzoia Sugar Company. I speak for 1.8 million people. These two leaders have accepted the factory to be leased to a guy called Rai, who took over Webuye Pan Paper Company. We refuse again and again,” said Mr Khalwale.
