Kenya Energy Cabinet Secretary Opiyo Wandayi has called on local communities and political leaders to support the government’s decision to lease state-owned sugar factories, describing the move as essential to reviving the struggling sugar sector, reported The Star.
Speaking in Nyakach on Sunday, Wandayi said the plan to lease the factories is a bold but necessary measure to ensure timely payments to farmers and factory workers, and to bring long-term sustainability to the industry.
“I urge our people and leaders to support this initiative. Our sugar factories must be self-sustaining, and this is the most effective path to get there,” Wandayi said.
He noted that for many years, publicly-owned sugar mills have incurred heavy losses despite receiving repeated financial support from the government.
“Every year, these factories make huge losses. The government steps in with more funding, but soon after, the cycle of losses begins again,” he said. “It’s a merry-go-round we need to end.”
Wandayi said the Cabinet’s decision to lease the factories to private investors is intended to introduce better management practices, boost operational efficiency, and secure steady payments to farmers and workers.
“We want sugarcane farmers to be paid on time and workers to receive their wages without delay. That’s only possible if the factories are managed efficiently by capable partners,” he explained.
He pointed to successful private millers such as Kibos, Butali, West Kenya, and Transmara, which he said continue to operate profitably while meeting their financial obligations.
“How is it that private sugar mills remain profitable and reliable in paying farmers and staff? That’s why we’re taking this step — to bring similar success to public factories,” he said.
Acknowledging concerns raised by some leaders, Wandayi urged them to engage in constructive dialogue while supporting the broader goal of reforming the sugar industry.
“I understand some leaders have concerns, and that’s valid. There is still space for discussions and consultation, especially between the national and county governments,” he said. “But we must press ahead. People are waiting to earn their livelihood.”
Wandayi emphasized that the ultimate aim is to restore the sugar sector’s role as a key economic pillar in sugar-growing regions.
Recently, some elected leaders from Kisumu County called on President William Ruto to issue an executive order halting the leasing of Chemelil, Muhoroni, and Miwani sugar factories. While the leaders clarified they were not against the idea of leasing itself, they expressed dissatisfaction with the process.
In a joint statement, they cited a lack of transparency, failure to involve the public, and concerns about the impact on local communities. The process, they argued, appeared rushed and unconstitutional, and they warned that it could harm the livelihoods of farmers who rely heavily on the sugar industry.
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