Agriculture Cabinet Secretary Mutahi Kagwe has reaffirmed that no State-owned sugar factory has been sold, stating that the government has only leased the factories through a transparent and Parliament-approved process.
Appearing before the National Assembly’s Agriculture Committee, Kagwe dismissed claims of opacity in the leasing process, emphasizing that all stakeholders were consulted from the outset.
“There is no selling of sugar factories that has been done. It’s leasing that has been done, and Parliament approved the whole process. I dismiss assertions that the process was opaque, considering all stakeholders were involved,” said Kagwe.
The CS further clarified that the entire leasing framework followed Parliamentary recommendations and stressed that the government remains committed to accountability and transparency.
“We are ready to submit any document for scrutiny by Parliament and the general public, as requested by MP Ruth Odinga, to assure the public on the lease process. The ministry has no dog in the race. All of us want the same thing: to save the farmers, ensure workers remain employed, and settle their debts,” Kagwe added.
He defended the decision to lease the ailing sugar factories, citing accumulated debts of over Ksh.5 billion. According to Kagwe, without intervention, the companies would have collapsed, leaving farmers and workers in economic distress.
“Farmers are owed about Ksh.5.6 billion, and the irony is that we’ve got one factory that is run by the private sector that pays the farmers every week, pays taxes…they are not perfect, but at least they pay their workers regularly,” he said.
The CS assured farmers that the government had taken over their debts to prevent financial loss and ensure continuity in sugarcane farming. He also confirmed that the leasing process adhered to normal procurement procedures.
National Assembly Agriculture Committee Chair Dr. John Mutunga supported Kagwe’s statement, reiterating that the leasing initiative underwent full Parliamentary oversight.
“The sugar leasing process was taken through Parliament; that’s why other members are not worried. The leasing process was not restricted,” said Dr. Mutunga.
The clarification comes as public and political debate continues over the future of Kenya’s sugar industry, with concerns raised about public participation and the protection of farmers’ interests.
In the recent leasing deals, West Kenya Sugar Company took over Nzoia Sugar Company, Kibos Sugar and Allied Industries Ltd was assigned Chemelil Sugar Company, Busia Sugar Industry was leased Sony Sugar Company, and West Valley Sugar Company Ltd will manage Muhoroni Sugar Company—all under 30-year contracts.