West Kenya Sugar Injects KSh 5.6 Billion into Nzoia Sugar Factory Renovation After Takeover.

West Kenya Sugar Company has officially taken over operations at Nzoia Sugar Factory, marking a new chapter for the struggling mill.As part of its commitment to revitalizing the sugar sector, the company has pledged KSh 5.6 billion to rehabilitate and modernize the factory ensuring efficient operations and improved productivity.

Chairman Jaswant Rai emphasized that worker welfare will be a top priority pledging close collaboration with the local community to ensure all stakeholders benefit from the factory’s revival.

Farmers supplying sugarcane to the mill will also receive timely payments, a move expected to boost morale and productivity in the sector.

The takeover comes as part of the Kenyan government’s broader strategy to revamp the sugar industry. Agriculture and Livestock Development CS Mutahi Kagwe confirmed that the government has officially handed over operations of Nzoia, Chemelil, Sony and Muhoroni sugar companies to private millers under a 30-year lease agreement.

The leasing model replaces the previously proposed privatization plan which was rejected after public participation and legislative review. Kagwe stated that the new approach allows private operators to bring in capital, expertise and efficiency while the government focuses on oversight and accountability.

Despite optimism surrounding the sugar sector’s revival, concerns remain over regulatory compliance and the impact on local farmers. Chairman Rai reassured stakeholders that West Kenya Sugar will operate within the law, maintaining transparency and ethical business practices.

Additionally, the government has promised to settle KSh 5.6 billion in arrears owed to factory workers by June 2026 with phased payments beginning this month.

Beyond the sugar industry, Kenya is facing economic challenges including slower GDP growth and rising unemployment cases. The latest Economic Survey report from the Kenya National Bureau of Statistics (KNBS) revealed that job creation declined significantly, with only 782,000 new jobs generated in 2024 compared to 848,200 in 2023.

As Kenya navigates economic hurdles, the revitalization of the sugar sector offers hope for job creation and agricultural stability. With private millers now leading operations, stakeholders are keenly watching how the new leasing model will impact farmers, workers and the broader economy.