Sugar mill leasing sparks uproar in Senate

A storm is brewing in Parliament after the government quietly handed over four State-owned sugar factories to private investors in a 30-year lease deal that lawmakers say was done without proper public involvement.

The move, which affects Chemelil, Muhoroni, Nzoia, and Sony sugar companies, has triggered outrage from senators who are now demanding answers on the criteria used, the legal status of the deal, and how it benefits sugar farmers and communities.

Chemelil has been leased to Kibos Sugar, Muhoroni to West Kenya Sugar, Nzoia to businessman Jaswant Rai, and Sony to Busia Sugar Industry.

While the State says the plan is meant to revive the struggling firms, senators argue that the process lacked transparency and that some of the investors may be more interested in acquiring land than in running the factories.

Nairobi Senator Edwin Sifuna warned that rushing to lease the mills without addressing concerns from farmers and leaders could backfire.

"If you are leasing out the sugar mills, and the person is not interested in reviving the mills, but is only after the land owned by that particular sugar plant, there is going to be a problem," he said.

"Nzoia Sugar has the biggest nucleus, and the people of Bungoma will not allow that land to be taken because they consider it their land."

The Senate has now turned its attention to whether the public was adequately consulted, with Busia Senator Okiya Omtatah leading the call for clarity.

"What is the impact of leasing out the sugar companies on farmers, employee,s and local economies, and what are the safeguards in place to protect public assets and ensure continued service delivery and economic empowerment in sugar-growing regions?" he asked.

Vihiga Senator Godfrey Osotsi questioned the secrecy around the process.

"The process was done opaquely. Even if the government has good intentions, can they involve the people and leaders of that region, instead of just waking up and saying they want to lease Nzoia Sugar Company?" he said.

Osotsi also pointed to past failures in the sector.

"I am among the people who believe that privatisation is not the solution to the problems we have in the sugar industry. Mumias Sugar was doing well before privatisation. The problems started increasing upon privatisation, where the management did not listen to anyone," he said.

Kisumu Governor Anyang’ Nyong’o also criticised the plan, saying the selected lessees have no proven capacity to run the firms.

"We firmly oppose this opaque lease plan, which ignores the social fabric, existing infrastructure, and public interests in sugar belt sub-counties," he said.

"The plan threatens to dismantle community livelihoods and invites monopolistic exploitation."

Nandi Senator Samson Cherargei said legal cases tied to the sugar sector must be addressed before any lease deal is implemented.

"I request the government not to be in a hurry because there will be a lot of legal hurdles that might affect this process," he said.

Kakamega Senator Boni Khalwale was even more direct, accusing the government of pushing a deal that affects millions without genuine consultation.

"Consulting those two leaders does not amount to public participation over Nzoia Sugar. I speak for 1.8 million people. These two leaders have accepted the factory to be leased to a guy called Rai, who took over Webuye Pan Paper Company. We refuse again and again," he said.

With pressure building, the Senate wants the entire leasing process reviewed, court matters concluded, and local voices heard before any long-term contracts are enforced.

For now, the future of these sugar mills remains unclear.