{"id":771733,"date":"2025-05-10T08:15:46","date_gmt":"2025-05-10T05:15:46","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/news\/?p=771733"},"modified":"2025-05-10T08:27:44","modified_gmt":"2025-05-10T05:27:44","slug":"govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/news\/2025\/05\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\/","title":{"rendered":"Govt hands 4 sugar mills to investors after &#8216;broad-based consultations&#8217;"},"content":{"rendered":"\n<p><strong>KISUMU, Kenya, May 10 &#8212; The government has handed over four public sugar mills to private investors in a bid to revive the country&#8217;s ailing sugar sector.<\/strong><\/p>\n\n\n\n<p>Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe hailed the process as transparent and in the best interests of cane farmers and factory workers saying it followed &#8220;broad-based consutations&#8221;.<\/p>\n\n\n\n<p>He said that under the leasing agreement, the government cleared all arrears owed to cane farmers before the handover of the factories.<\/p>\n\n\n\n<p>&#8220;Last year, the government disbursed Sh1.7 billion towards settling arrears owed to farmers,&#8221; said Kagwe.<\/p>\n\n\n\n<p>Since then, Kagwe reported that the factories have accumulated an additional Sh500 million in arrears for cane delivered by farmers, which he said will be paid out in July.<\/p>\n\n\n\n<p>He further noted that the government paid Sh600 million to factory workers last year, part of the total Sh5.3 billion owed to them.<\/p>\n\n\n\n<p>&#8220;The amount owed to workers has now accrued to Sh5.6 billion, and after lengthy negotiations, we have reached a settlement plan with the workers&#8217; union,&#8221; he said.<\/p>\n\n\n\n<p>According to the CS, the four mills have been leased to private investors for 30 years following a rigorous public participation process involving leaders, farmers, factory workers, and other stakeholders.<\/p>\n\n\n\n<p>Chemelil Sugar Factory has been leased to Kibos Sugar Factory, Muhoroni Sugar Factory to West Valley Sugar Factory, and Nzoia Sugar Factory to West Kenya Sugar Factory. <\/p>\n\n\n\n<p>The South Nyanza-based South Nyanza (SoNY) Sugar Company has been leased to Busia Sugar Factory.<\/p>\n\n\n\n<p>The handover process was completed on Saturday, with ceremonies held at all four mills across the country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-resistance\">Resistance <\/h2>\n\n\n\n<p>This came despite opposition from Kisumu Governor Anyang\u2019 Nyong\u2019o, who criticized the leasing process as opaque. <\/p>\n\n\n\n<p>Nyong\u2019o claimed the handover of Muhoroni and Chemelil mills to private millers was done without sufficient consultation with the county government, farmers, and factory workers.<\/p>\n\n\n\n<p>However, CS Kagwe, in a statement on the finalization of the process, said stakeholder engagement dates back to 2015.<\/p>\n\n\n\n<p>&#8220;The procurement of the four firms follows a broad-based engagement with sugar sector stakeholders that began in 2015, when Parliament approved the leasing,&#8221; said the CS.<\/p>\n\n\n\n<p>He assured the public that due process was followed and that the move to lease the mills represents a viable step toward reviving the struggling sector.<\/p>\n\n\n\n<p>Kagwe also moved to allay fears that factory land would be sold under the leasing agreement, assuring stakeholders that all land and other property belonging to the state-owned mills would remain under government ownership.<\/p>\n\n\n\n<p>He affirmed that the negotiated terms offer the best possible outcome for revitalizing the sugar industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe hailed the process as transparent and in the best interests of cane farmers and factory workers saying it followed &#8220;broad-based consutations&#8221;.<\/p>\n","protected":false},"author":12764,"featured_media":553994,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8462,4625,26],"tags":[23906,1981,23907,3570,23908,23909,23905],"coauthors":[313],"class_list":["post-771733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agriculture","category-national-news","category-top-stories","tag-chemelil-sugar-factory","tag-featured","tag-muhoroni-sugar-factory","tag-nyanza","tag-nzoia-sugar-factory","tag-sony-sugar","tag-sugar-mills"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v27.5) - 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Kenya breaking news | Kenya news today | Capitalfm.co.ke\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.capitalfm.co.ke\/news\/2025\/05\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\/\" \/>\n<meta property=\"og:site_name\" content=\"Capital News\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/facebook.com\/capitalfmkenya\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-10T05:15:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-10T05:27:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.capitalfm.co.ke\/news\/files\/2020\/03\/MUTAHI-KAGWE-CS-HEALTH-e1736848634874.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"630\" \/>\n\t<meta property=\"og:image:height\" content=\"420\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"OJWANG JOE\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@capitalfmkenya\" \/>\n<meta name=\"twitter:site\" content=\"@capitalfmkenya\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"OJWANG JOE\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/\"},\"author\":{\"name\":\"OJWANG JOE\",\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/#\\\/schema\\\/person\\\/fb700bceefd4e6702dd40165c229422e\"},\"headline\":\"Govt hands 4 sugar mills to investors after &#8216;broad-based consultations&#8217;\",\"datePublished\":\"2025-05-10T05:15:46+00:00\",\"dateModified\":\"2025-05-10T05:27:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/\"},\"wordCount\":431,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/files\\\/2020\\\/03\\\/MUTAHI-KAGWE-CS-HEALTH-e1736848634874.jpg\",\"keywords\":[\"Chemelil Sugar Factory\",\"featured\",\"Muhoroni Sugar Factory\",\"Nyanza\",\"Nzoia Sugar Factory\",\"SoNY Sugar\",\"sugar mills\"],\"articleSection\":[\"AGRICULTURE\",\"NATIONAL NEWS\",\"Top stories\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/\",\"url\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/\",\"name\":\"Govt hands 4 sugar mills to investors after 'broad-based consultations' &#187; Capital News\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/2025\\\/05\\\/govt-hands-4-sugar-mills-in-nyanza-to-investors-after-broad-based-consultations\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.capitalfm.co.ke\\\/news\\\/files\\\/2020\\\/03\\\/MUTAHI-KAGWE-CS-HEALTH-e1736848634874.jpg\",\"datePublished\":\"2025-05-10T05:15:46+00:00\",\"dateModified\":\"2025-05-10T05:27:44+00:00\",\"description\":\"Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe hailed the process as transparent and in the best interests of cane farmers and factory workers saying it followed \\\"broad-based consutations\\\". - 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