I’m not against leasing of public sugar mills, Nyong’o clarifies

Kisumu Governor Anyang’ Nyong’o has refuted claims suggesting a rift between him and former Prime Minister Raila Odinga concerning the planned leasing of public sugar mills.

Dismissing the allegations as baseless, Nyong’o clarified that he and the ODM leader share a unified stance on the matter.

"We are in full agreement—the government should withdraw from managing these factories and instead allow private investors to lease them through an open and competitive process," he stated.

However, in his statement, the governor emphasized that the transition must be inclusive, with active participation from farmers, employees, and county governments to ensure long-term success and viability.

The government has already concluded a 30-year lease arrangement that will see four major state-run sugar factories transferred to private operators.

This shift is anticipated to revitalize the sector by enhancing efficiency, boosting production, and promoting financial stability, following years of mismanagement and accumulated debt

Under the new framework, West Kenya Sugar Company is set to assume control of Nzoia Sugar Company, while Kibos Sugar and Allied Industries Ltd will oversee operations at Chemelil Sugar Company.

Sony Sugar Company will be run by Busia Sugar Industry, and Muhoroni Sugar Company will be leased to West Valley Sugar Company Ltd.

On Thursday, following a meeting with Agriculture Cabinet Secretary Mutahi Kagwe, Raila Odinga voiced his backing for the government’s initiative to lease state-owned sugar mills to private entities.

Raila emphasized that this leasing strategy is crucial for spurring economic development.

Their discussions focused on revitalizing the agricultural sector, with particular attention on the progress of leasing sugar companies to private investors.

However, earlier reports suggested that Governor Nyong’o had called for an immediate halt to the ongoing leasing process in Kisumu County, citing concerns that it could jeopardize local livelihoods, land ownership, and social harmony in the sugar-growing region.

He reportedly criticized the privatization of Chemelil and Muhoroni sugar factories as hasty and lacking transparency, warning that it might reverse development gains, encourage land dispossession, and fuel ethnic divisions.