The government has finalized a 30-year lease agreement handing over operations of the troubled Nzoia Sugar Company to West Kenya Sugar Company, a move aimed at reviving the state-owned miller that has faced years of financial struggles.
Nzoia Sugar Company, located in Bungoma County, is among five state-owned sugar factories leased to private investors in a government-led reform initiative. West Kenya Sugar Company, under the Rai Group, emerged as the highest bidder, outpacing two other contenders—Mumias Sarai and Jumbo Mattresses of Kisumu.
Speaking to journalists during a press briefing in Bungoma Town, Nzoia Sugar Board Chairman Alfred Khangati confirmed the handover will take place within two weeks, following approval by key stakeholders.
“As a board and management, we are keen to facilitate a smooth transition from the government to West Kenya, which has secured the bid after successfully leading the process,” Khangati said.
He added that the National Treasury will settle KSh 274 million owed to farmers and KSh 2.3 billion in unpaid retirement dues for former employees. Khangati assured the farming community that the government is consolidating records for prompt payments.
“Farmers should remain calm as the government works to clear the outstanding arrears,” he said.
The board chairman also called on politicians to avoid interfering with the transition process, warning that political tension could derail the much-needed reforms.
“Politics is our main setback in this process. We urge leaders to let the professionals handle the lease for the benefit of our people,” Khangati noted.
Although optimistic, Khangati emphasized the need for caution, citing the Rai Group’s previous acquisition of Webuye Pan Paper, which has yet to be fully revitalized.
“In Nzoia, we are doing things with caution because the government wants the welfare of farmers, workers, and residents protected,” he stressed.
Khangati, flanked by fellow board director Boniface Otsiula, concluded by promising transparency in the handover process, noting that details of the contract and a list of assets would soon be made public to all stakeholders.
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