Government to Revoke Licenses of Underperforming Sugar Investors, Kenya Sugar Board Warns
The move comes after the government chartered four state-owned sugar factories—Chemelil, Nzoia, Muhoroni, and Sony—to private investors under 30-year lease agreements.
Kenya Sugar Board. Photo/Daily Nation.
By Juliet Jerotich
The government will revoke licenses of private investors in the sugar sector who fail to meet performance expectations, the CEO of the Kenya Sugar Board, Jude Chesire, has announced.
Speaking during a press briefing, Chesire stated that the decision targets underperforming private millers entrusted with reviving key state-owned sugar companies.
The move comes after the government chartered four state-owned sugar factories—Chemelil, Nzoia, Muhoroni, and Sony—to private investors under 30-year lease agreements.
The mills were handed over to companies including West Valley Sugar, Kibos Sugar and Allied Industries.“The objective of these charters is to benefit farmers. If the farmers are not receiving the returns they deserve, then these investors have no business managing the mills,” Chesire said. “Their licenses will be revoked, and control will be returned to the farmers.”
Chesire clarified that the 30-year lease terms are conditional and must be justified by capital investment and improved performance. If investors fail to deliver on their commitments, the government will prioritize farmer welfare and seek alternative management options.
He also confirmed that farmers will receive bonuses based on the quantity of sugarcane supplied, a measure aimed at incentivizing increased production and supporting livelihoods.
The announcement comes amid rising tensions in the western region, where local leaders and farmers are protesting the lease of Nzoia Sugar Company.
Democratic Action Party–Kenya (DAP-K) leader Eugene Wamalwa led demonstrations against the deal, accompanied by Trans Nzoia Governor George Natembeya, former senator Cleophas Malala, and hundreds of farmers.
Wamalwa and his team have condemned the chartering process, calling it illegal and in violation of a court order issued on April 23, which temporarily barred the handover of Nzoia Sugar to businessman Jaswant Rai.
Protesters accuse the government of ignoring legal procedures and using force to transfer control of the mill.“This is a blatant disregard for the rule of law,” said Wamalwa. “We cannot allow state property to be handed over without transparency or respect for farmers’ rights.”
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