CS Kagwe: State sugar factories were leased, not sold

Agriculture Cabinet Secretary Mutahi Kagwe has set the record straight on the status of state-owned sugar factories, stating that none has been sold but instead leased out through a process approved by Parliament.

Appearing before the Agriculture Committee of the National Assembly on Tuesday, the Cabinet Secretary rejected claims suggesting the process lacked openness.

He explained that the leasing was carried out with all stakeholders involved and under the full guidance of the law.

"No sugar factory has been sold. It’s leasing that has been done, and Parliament approved the whole process. I dismiss assertions that the process was opaque, considering all stakeholders were involved," Kagwe said.

He also responded to a request from Kisumu Woman Representative Ruth Odinga, who had asked for more openness in the leasing process.

Kagwe assured lawmakers that all necessary documents could be made available for review by Parliament and the public.

"We are ready to submit any document for scrutiny by Parliament and the general public, as requested by Kisumu Woman Representative Ruth Odinga to assure the public on the lease process," he added.

Backing the Cabinet Secretary’s remarks, Agriculture Committee Chair John Mutunga said the process was not kept away from Parliament.

He underlined that proper steps were taken and that members of the House had no reason to be concerned.

"The sugar leasing process was taken through Parliament; that's why other members are not worried. The leasing process was not restricted," Mutunga noted.

Despite these assurances, questions have continued to surface over the level of public involvement in the leasing of government-owned factories.

A number of leaders have raised alarm over what they say was a lack of consultation with communities affected by the decisions.

On Tuesday, the Kenya Sugar Board threw its weight behind the leasing initiative. Speaking in Nairobi, the board’s Chief Executive Officer, Jude Chesire, said the decision was made with farmers in mind and was aimed at reviving the ailing sugar sector.

“Farmers come first. If investors leasing sugar factories fail to modernise mills, support cane development, or pay farmers weekly as agreed, the government will revoke their leases, simple,” Chesire stated.

His comments followed protests on Monday in Bungoma, where police blocked a convoy led by Trans Nzoia Governor George Natembeya from accessing Nzoia Sugar Company. The factory is one of four that have been leased to private investors.

Other leaders in the convoy included DAP-K Party leader Eugene Wamalwa. They dismissed the leasing of the factories as unlawful, claiming that local communities were left out of the decision-making.

The four factories now under lease include Nzoia Sugar, which will be operated by West Kenya Sugar Company; Chemelil, handed to Kibos Sugar and Allied Industries; Sony Sugar, assigned to Busia Sugar Industry Ltd; and Muhoroni, which will be managed by West Valley Sugar Company.