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Govt to reopen four leased state-owned sugar factories

KISUMU, Kenya, Sept 27 – The Kenya Sugar Board (KSB) has announced that all four state-owned sugar mills recently leased to private investors will be fully operational by the end of October.

According to KSB Chairman, Nicholas Gumbo, two of the mills, Muhoroni and South Nyanza (SoNY) Sugar Companies, are already up and running.

“We have toured these factories and I can confirm that two are fully operational and producing sugar,” said Gumbo.

He added that the remaining two mills, Chemelil and Nzoia, are in the final stages of machine rehabilitation and are on track to begin milling by the end of next month.

“The progress is commendable. Everyone involved is working within the set timelines to ensure full resumption of operations,” he noted.

Speaking during a visit to Chemelil Sugar Company on Friday, Gumbo assured farmers of better days ahead once all four mills are fully operational.

Chemelil Sugar 2025 Director Jassi Chatthe confirmed that their factory is on course to resume milling by the end of October.

“We’re currently rehabilitating the machines in phases. Phase one is nearly complete,” said Chatthe. “The upgrade process will continue until the entire factory is fully revamped.”

On the issue of delayed salaries, Gumbo said the government is actively addressing the matter.

“This is a process, and workers need to understand that these factories were mismanaged for decades. It’s unrealistic to expect full recovery within just three months,” he emphasized.

Gumbo also reported significant improvements at the two mills already in operation.

“Before leasing, these mills were only crushing about 7,000 tonnes of cane per week. Now, they’re processing 11,000 tonnes weekly,” he said.

He attributed this improvement to increased efficiency under the leasing model, which he described as the best way to revive the struggling sugar industry and benefit local farmers.

“The change is already visible. Towns around the operational mills are coming back to life, with money circulating and local economies rebounding,” Gumbo noted.

He revealed that previously, the mills were generating only Sh20–30 million monthly, while their salary obligations exceeded Sh100 million.

“That’s how the salary arrears built up. But now, under the new management, the mills can cover salaries and still make profits,” said Gumbo.

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