The Kenyan government, through the Kenya Sugar Board (KSB), is in the final stages of a significant initiative to lease several state-owned sugar factories. This move is part of a larger strategy aimed at improving efficiency, reducing the heavy debt burden, and revitalising the country’s struggling sugar sector, reported Farmers Review Africa.
Speaking at the Africa Sugar Conference 2025 held in Nairobi earlier this week, Richard Magero, the Deputy Director of the Sugar Directorate at KSB, highlighted that this leasing plan is a key component of several strategic reforms designed to breathe new life into the underperforming industry.
“For many years, our sugar sector has been plagued by serious issues, including outdated equipment, poor management practices, and recurring financial crises that have repeatedly required government bailouts for farmers,” Magero explained.
He further noted that various assessments have clearly shown a significant performance gap between privately-owned and state-run sugar mills. Privately managed factories consistently outperform public ones in crucial areas such as sugarcane production, processing efficiency, and revenue generation. These findings were instrumental in the government’s decision to seek private investors to lease and manage the public sugar mills.
The leasing process officially commenced late last year following the resolution of several legal challenges. It has now progressed to an advanced stage, with potential investors currently undergoing a thorough vetting process based on their submitted proposals.
“We are optimistic that we will soon identify reliable and experienced investors who possess the capacity to transform these public mills and deliver tangible benefits to our farmers and the overall national economy,” Magero stated confidently.
The state-owned sugar companies slated for leasing include Nzoia Sugar Company Limited, Chemelil Sugar Company Limited, Muhoroni Sugar Company Limited, and South Nyanza Sugar Company Limited.
