NAIROBI, Kenya, June 1 – President William Ruto has justified the government’s decision to lease out four state-owned sugar factories, calling it a vital step to improve efficiency, restore profitability, and safeguard the livelihoods of farmers.
Speaking at the 62nd Madaraka Day celebrations in Homa Bay County, Ruto said the leasing of Nzoia, Chemelil, Sony, and Muhoroni sugar mills was long overdue and essential for revitalizing the struggling sugar industry.
“We must acknowledge that enhancing the efficiency of milling plants directly serves the interests of our farmers,” he said.
“Efficient mills yield more profits and deliver better returns to growers.”
Ruto decried the dilapidated state of many public sugar factories, pointing out that some rely on machinery that is more than five decades old, resulting in extremely low sugar recovery rates.
The leasing plan, conducted through a competitive process, is part of the government’s wider agricultural reform strategy to boost productivity and strengthen food security.
However, the move has drawn criticism from some leaders and farmers who fear potential job losses and exploitation by private entities.
Despite the concerns, Ruto insisted the reforms are aimed at securing the long-term sustainability of the sector and the broader economy, as the government moves to lease and privatize several underperforming state corporations.
The leasing initiative follows the passage of the Privatization Act in 2023, which President Ruto signed into law to streamline the privatization process. The new law gives the National Treasury authority to sell state-owned enterprises without seeking parliamentary approval.
The government says the shift is designed to reduce the country’s growing public debt and attract private investment by offloading non-performing assets.
It also aims to revive underperforming parastatals and make them profitable again.
