Governors back sugar mill leasing, blame mismanagement and politics

The Council of Governors has supported the government’s plan to lease four state-owned sugar factories to private investors, saying the move is long overdue due to years of failed state management.

In a joint stance after a meeting in Mombasa, the governors said the Sh12.29 billion private investment will help revive the sector, settle debts, and restore livelihoods in sugar-growing regions.

CoG Chair Ahmed Abdullahi said the leasing plan had passed through all legal processes, including public scrutiny, parliamentary approval, and court clearance.

He dismissed critics of the deal as dishonest, saying the opposition is politically motivated.

"This is a chance to bring efficiency and real change. The political noise is misleading," Abdullahi said.

Bungoma Governor Kenneth Lusaka echoed the support and cited the success of the privately owned Naitiri Sugar in the same region as proof that private investment can turn around the struggling sector.

"The model has worked before. We are confident it will work again," he said.

Under the leasing plan, West Kenya Sugar will take over Nzoia Sugar and invest Sh5.7 billion, Kibos Sugar will put Sh4.5 billion into Chemelil, West Valley Sugar will inject Sh1 billion into Muhoroni, and Busia Sugar will invest Sh1 billion in Sony Sugar.

The companies will also pay Sh521 million in goodwill and additional annual lease fees that will go toward cane development and support for local communities.

Agriculture Cabinet Secretary Mutahi Kagwe said the funds will help pay Sh1.5 billion in July to clear worker arrears, followed by Sh1.17 billion in quarterly payments to farmers.

"The four leasees will pay a total of Sh521 million in goodwill for the leasing of land belonging to the mills. The payment is calculated based on the annual cost of leasing land per hectare," Kagwe said.

But the deal has drawn growing opposition from some senators, who say the process lacked full public participation and may open the door to land grabs.

The Senate Trade Committee has summoned the Agriculture CS to provide lease documents, asset registers, and debt records.

Senators Edwin Sifuna, Godfrey Osotsi, Okiya Omtatah, and Boni Khalwale have raised concerns over secrecy and rushed decisions.

Even so, the Council of Governors insists that leasing is the only realistic way to revive the sector and restore sugar production.

They have urged leaders to stop politicising a plan they say is grounded in fact, law, and public interest.