Businessman Jaswant Rai to acquire Nzoia Sugar Factory- Board
The takeover is expected to happen as early as next week, signaling the start of a new era for the struggling miller.
Nzoia Sugar Factory is set to be leased to a private investor, marking a significant shift in its operations.
The factory’s board chair, Alfred Khang’ati, has officially confirmed that the facility will be handed over to businessman Jaswant Rai under a 30-year lease agreement.
According to Citizen Digital, the takeover is expected to happen as early as next week, signaling the start of a new era for the struggling miller.
Khang’ati also assured stakeholders that cane farmers will receive over Sh200 million in outstanding payments before the current financial year concludes.
This move is seen as a crucial step towards restoring confidence among sugarcane growers who have long awaited compensation for their deliveries.
To ensure continuity and minimize disruption, the factory’s employees will continue working under the incoming management for at least one year.
This transition period is designed to create a seamless handover while allowing the new investor time to implement structural and operational changes.
"In the coming week or the week after, they will no longer belong to the government. Some private enterprises will have taken over. The aspect of privatisation or leasing is for 30 years. A lease agreement has already been signed between the government and the lessee," Bonface Otsiula, Board Member at Nzoia Sugar Factory, stated
"We are looking at the wider public interest, which involves the welfare of the farmers and staff who have not earned salary from 2022 to date, and they have persevered," Khang’ati added.
Meanwhile, National Assembly Speaker Moses Wetang'ula in a post on his X account has denied reports that the factory is up for sale, describing them as misinformation.
"To dispel misinformation, no one is selling Nzoia Sugar. That land belongs to the government. All debts will be paid, and any pending matters will be resolved transparently. Misinformation must not distract us from progress," said the Speaker.
"Bungoma has what it takes to become a City, and that is the direction we are headed. City status will bring with it infrastructure, investment, and new opportunities for our people. Let us support our President as we walk this journey together."