Government Defends Nzoia Sugar Factory Leasing Amid Backlash From Farmers and MPs

• The Kenyan government has defended leasing Nzoia Sugar Factory by stating that it followed legal procedures and aims to revive the sugar industry.
• Agriculture CS Mutahi Kagwe and Kenya Sugar Board CEO Jude Chesire assured farmers that the lease prioritises their interests and includes strict conditions for investors.
• Western MPs, led by Majimbo Kalasinga, have opposed the lease, citing a court injunction and lack of transparency.
• Some farmer groups support the lease, stating delayed payments under public management and confidence in Rai’s private investment approach.

Agriculture Cabinet Secretary Mutahi Kagwe announced that the leasing initiative is a deliberate and strategic step to revitalise the ailing sugar industry. He clarified that the process followed due legal procedures, including extensive stakeholder consultations and parliamentary approval. As seen on K24TV, he stated,

No sugar factory has been sold. It’s leasing that has been done, and Parliament approved the whole process. The parliament itself decided itself not to sell the factory, but instead lease it.

In addition, Kenya Sugar Board CEO Jude Chesire reiterated that the leasing terms prioritise the interests of farmers. He warned that any investor who fails to modernise machinery, invest in cane development, or honour payment agreements will have their lease revoked. These are the CEO’s statements,

Farmers come first. If investors leasing sugar factories fail to modernise mills, support cane development, or pay farmers weekly as agreed, the government will revoke their leases, simple.

However, the government’s defence is yet to tackle all critics. A group of MPs from the region, led by Majimbo Kalasinga Kabuchai, Member of Parliament, have threatened legal action to stop the lease. They claim the process ignored a court injunction and lacked transparency. Kalasinga made the following remarks,

I was with the president…when we were having the economic forum that was to be held in Bungoma. The issue of leasing has come after election. My friend we want to stop this political turmoil...

During the Senate proceedings of 8 May 2025, Senator Sifuna Edwin Watenya gave his remarks opposing the lease. He said,

…The people of Bungoma will not allow that land to move because they consider that land their own. The last time we had a plan to privatise companies, we came together and agreed there will be no privatisation without the involvement of the local community…

Meanwhile, some farmer groups have expressed overwhelming support for the leasing of Nzoia Sugar Company Limited. As reported by Prime Africa Channel, farmer representative Gregory Nabukwesi praised the government’s move and pointed to the comparative success of privately run sugar mills in the region.

We support the government’s move to hand over Nzoia to Rai, a private developer whom we have worked with before at his West Kenya Sugar Company, and we have no problem with him.

Fellow farmer David Opala echoed these sentiments, lamenting the long-standing delays in farmer payments and unpaid wages for workers.

Farmers have endured delayed payments, sometimes for years, and workers have gone for months without salaries. This is both unjust and unsustainable.

Wrapping Up

The government remains confident that leasing the Nzoia Sugar Factory will help revive the sugar sector. However, opposition from leaders and farmers highlights lingering concerns over transparency and inclusivity. For the lease to succeed, it must deliver tangible benefits to farmers and be subject to strict oversight.