The Agriculture Cabinet Secretary, Mutahi Kagwe, has revealed that the Kenya Union of Sugar Plantation and Allied Workers (KUSPAWU) has approved the government's plan to lease the Nzoia, Chemilil, Muhorono, and Sony sugar factories.
In a statement on Wednesday, April 30, the CS, who held a meeting, however, revealed that he will hold a series of meetings with other stakeholders, including the governors and other farmer representatives, to ensure that the leasing will not be done without further approval from other stakeholders of the factories.
Kagwe has further assured that the government will ensure that investors who will take over the factories will go through vetting to ensure that they meet the necessary threshold set by the government.
"We cannot do this arbitrarily; there is leadership in that area that cannot be ignored. We cannot ignore the unions; we cannot ignore the farmers' representatives. Nobody will be allowed to take over the factories before they are properly vetted and can meet the conditions set by the government," he stated.
"Nobody will be allowed to take over the factories before they are properly vetted and can meet the conditions set by the government. The negotiations are still going on to ensure that when we lease out the factories, the interests of farmers and workers are protected," he added.
Speaking during the same meeting, the National Treasury's Director General of Public Investments and Portfolio Management, Lawrence Kibet, assured that the government will ensure that farmers and workers in the four factories will be paid their dues before the factories are finally leased.
"Kagwe moved to reaffirm the government’s commitment to farmers and workers that all dues will be paid before the handover of the factories to the lessees who are still being vetted," the statement read.
The government first announced its plan to lease the four sugar factories to private investors in October 2023 in a bid to revive the country's sugar sector.
Currently, the state owns a 98.8 per cent stake in the Sony factory, a 97.93 per cent stake in Nzoia, a 96.22 per cent stake in Chemelil, and an 82.8 per cent stake in the Muhoroni factory.
The ministry had given interested investors until March 21, 2025, to submit their bids, after which evaluation shall take place, and eventually, those successful shall be announced.
According to Kilion Anyango, who was a representative of the Kenya National Federation of Sugarcane Farmers, during the meeting, the farmers had agreed to the leasing of the factories but not the privatisation.
"All we ask is for the regulator, the Kenya Sugar Board, to standardise weighbridges to ensure fairness and transparency. The process of leasing has been slowed by court cases filed by different parties. We ask that a Sugar Arbitration committee be put in place to settle such matters out of court,” he stated.
On the other hand, the KUSPAWU Secretary General, Francis Wangara, urged the ministry to ensure that the investors who will take over the factories shall honour the current Collective Bargaining Agreements (CBAs) between the factories and unions.
