Ruto justifies leasing sugar factories to private investors

President William Ruto has stood by the decision to lease four sugar factories to private investors, explaining that this step was taken to enhance the efficiency of the sector.

Addressing the audience during the 62nd Madaraka Day celebrations in Homa Bay on Sunday, June 1, 2025, Ruto outlined the targeted investments in agriculture designed to boost productivity and streamline operations.

The president also addressed concerns surrounding the leasing process, which has faced significant backlash, particularly from leaders in the western counties.

"The recent competitive leasing of four state-owned sugar mills Nzoia, Chemelil, Muhoroni, and Sony is a deliberate move aimed at boosting efficiency, restoring profitability, and protecting farmers’ livelihoods," Ruto explained.

"Our objective is to modernize these mills, ensure timely payments to farmers and staff salaries, and turn these formerly struggling factories into productive and sustainable businesses. For years, these factories have been a financial drain on the public coffers, surviving on repeated taxpayer bailouts while failing to compensate farmers and workers," he added.

Ruto emphasized that the companies’ assets and land remain leased under strict conditions and have not been sold, contrary to widespread reports.

"Let me be clear: neither the factories nor the land have been sold. They are still public assets leased under stringent terms designed to create value for farmers, workers, and the entire sector," he stated.

The president’s remarks come amid strong public opposition following the announcement of the 30-year lease agreements.

Following the takeover, Senators Edwin Sifuna and Godfrey Osotsi publicly criticized the leasing process, raising concerns over its lack of transparency.

Sifuna questioned why the sugar companies were leased to national investors despite the tender being open internationally.

"It’s hard to believe that only two or three families in the entire world are capable of running sugar companies in Kenya. If the tender was international, why are the only respondents local families? There’s clearly a problem," Sifuna said.

Senator Osotsi also criticized President Ruto, reminding him of his earlier promise to the people of the western region to revive the sugar industry. Osotsi accused the president of betraying that commitment for personal interests.

"This process reeks of corruption. We cannot allow Nzoia Sugar Company, which farmers helped establish by providing land, to be handed over so easily. We’ve seen this before with Pan paper, which was sold for just Sh900 million after costing Sh20 billion, under the promise of revival."

"Today, the company is non-operational, and former employees live in extreme poverty," Osotsi stated.