Government clarifies reports of selling sugar companies amid protests
Agriculture Cabinet Secretary Mutahi Kagwe has dismissed reports that the government has sold sugar companies in the latest leasing programme.
Agriculture Cabinet Secretary Mutahi Kagwe has dismissed reports that the government has sold sugar companies in the latest leasing programme.
While appearing before the NA Committee on Agriculture, the CS clarified that the companies had only been leased.
He added that the government had followed due procedure in leasing the companies for 30 years.
“CS Mutahi Kagwe has affirmed that no sugar factory in Kenya has been sold, clarifying that the government has only leased them out through a transparent, Parliament-approved process,” read the statement in part.
“The CS also assured that farmers’ interests remain a priority, with the government addressing outstanding debts owed to them and workers. The session ended with MPs expressing confidence in the reform process aimed at reviving the sugar sector.
The companies affected include Nzoia Sugar Company, which was leased to West Kenya Sugar Company.
Chemilil Sugar Company was leased to Kibos Sugar & Allied Industries, Sony Sugar Company was leased to Busia Sugar Industry Ltd, while Muhoroni Sugar Company was leased to West Valley Sugar Company
The leasing of the companies has been met with sharp criticism from locals and area leaders.
For instance, on Tuesday, leaders from Kisumu County, led by Governor Anyang’ Nyong’o called on the government to halt the leasing program, citing a lack of public participation.
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“We, the elected leaders of Kisumu County, completely reject the leases and affirm the call by farmers and other stakeholders that the sugar factories and assets be returned to the good people of Kenya until such a time that there will be comprehensive consultation on the leasing process,” read the statement.
“The sugar economy in Kisumu is a multi-billion-shilling industry. These factories support thousands of households. You cannot hand them over in secrecy and expect the people to accept it,” Seme MP James Nyikal added.
Notably, in Tranz Nzoia, residents staged protests over the move by the government to lease the Nzoia Sugar Company.
According to residents, locals were not consulted, and they also demanded payment of outstanding debt to farmers before the leasing agreement commences.
They also noted that 30 years was too long for a lease.
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