Revival plan: Kenya government starts process to lease five sugar mills for 20-years

In a new revival plan, the government has initiated the leasing process for five public sugar mills to private companies, granting them a 20-year operational lease.

The Ministry of Agriculture and Crops Development has listed Nzoia Sugar Company, South Nyanza Sugar Company, Chemelil Sugar Company, Muhoroni Sugar Company  in receivership), and Miwani Sugar Company (also in receivership) for leasing.

As per media reports, the government owns a 98.8 percent stake in South Nyanza, 97.93 percent in Nzoia, 96.22 percent in Chemelil through the Agricultural Development Corporation (ADC) and 1.42 percent through the Development Bank of Kenya (DBK).
Additionally, the government holds an 82.8 percent stake in Muhoroni and a 49 percent stake in Miwani.

Highlighting the significance of this move, the Ministry stated in a notice on Tuesday, “These sugar factories have a combined potential of 30 percent of the sugar market share in Kenya in a market currently standing at 1 million tonnes per annum.” This strategic step is part of a broader effort to enhance the efficiency and viability of the sugar industry in the country.

As per news report published in News Daily, successful bidders will control mills, office buildings, machinery, equipment, nucleus farms, staff and guest houses, schools, sports stadia and service contractor yards owned by the millers.


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