Agriculture Cabinet Secretary Mutahi Kagwe on Monday toured West Kenya Sugar Company in Kakamega, just weeks after the firm secured a 30-year lease to manage operations at the ailing Nzoia Sugar Company.

The visit underscored the government's commitment to enhancing private sector participation in the revival of Kenya's sugar industry.

Now under the stewardship of the Rai Group-owned West Kenya Sugar, Nzoia Sugar is expected to benefit from the lease agreement aimed at restoring efficiency and profitability in the state-owned mill.

While addressing stakeholders during the visit, CS Kagwe unveiled a Sh4 billion national funding initiative under the Sugar Development Levy, set to be released annually to bolster the entire sugar value chain.

He revealed that 40 per cent of the funds approximately Sh2 billion would go toward cane development efforts.

The remainder of the allocation will support critical areas in the sector, with 15 per cent (around Sh600 million) directed to road upgrades in cane-growing zones, another 15 per cent each going to research and innovation and factory rehabilitation, 5 per cent to farmer associations, and 10 per cent earmarked for administrative costs under the Sugar Board.

Kagwe emphasized that the funding plan is designed to ensure long-term viability for the sugar sector, adding that the allocations were shaped through consultations with farmers and key industry stakeholders.

Kagwe called for greater support for private investors committing resources to the revival of the sugar sector, citing West Kenya Sugar as a key example.

He praised the firm’s policy of issuing weekly payments to its network of over 120,000 contracted farmers, along with maintaining regular monthly salaries for employees.

The company disburses more than Sh14 billion annually to farmers and invests an additional Sh7 billion in cane development.

According to Agriculture and Food Authority data, by the end of September 2024, nearly 50 per cent of Kenya’s sugarcane-growing land was under the stewardship of the Rai Group, underscoring its significant footprint in the industry.

Kagwe further directed the Sugar Board to begin consultations aimed at establishing and enforcing zonal boundaries for millers, a move intended to curb conflicts and promote orderly operations within the sector.

The CS urged farmers to harvest only mature cane, noting that sugar quality and the industry's competitiveness hinge on proper harvesting practices.

As part of his tour to evaluate the role of private millers in ongoing sector reforms, Kagwe also made a stop at Butali Sugar Mills in Kakamega County.