Former Prime Minister Raila Odinga has expressed support for the government's plan to lease sugar companies to private investors, a move that strongly disagrees with his ODM counterpart, Kisumu Governor Anyang' Nyong'o, who had condemned the leasing.
Raila, who spoke on Thursday after a meeting with Agriculture Cabinet Secretary Mutahi Kagwe, said leasing the sugar millers is necessary for economic growth.
Raila and Kagwe had met to discuss how the agricultural sector would be revived. The discussions also included the ongoing plans to lease sugar companies to private investors.
"Discussions also centered around the strategic leasing of sugar mills—an effort aimed at revitalizing the sugar industry and ensuring long-term sustainability for farmers and other stakeholders. Raila expressed keen interest and support for these reforms, recognizing their potential to spur rural economic growth and food security," ODM Communication Strategist Philip Etale, said in a statement soon after the meeting.
The Kenya Kwanza government is planning to lease four sugar companies - Nzoia, Chemelil, Muhoroni, and Sony Sugar - in a move it says will revive the companies and increase the fortunes of stakeholders, especially workers and farmers.
The move, however, elicited a heated debate with a section of leaders, including Governor Nyong’o, opposing it.
On Wednesday, Nyong'o termed the move an economic coup against farmers and the people of Western Kenya. The governor poked holes in the leasing plan, saying it excludes key stakeholders.
“We are dismayed to learn that the planned leasing of Chemelil Sugar Factory and Muhoroni Sugar Factory has been fast-tracked and finalized under a cloak of secrecy,” Nyong’o said.
The plan was initiated by President William Ruto in May 2023 and later approved by the Cabinet and Parliament. The Ministry of Agriculture and Livestock Development has been overseeing the process, inviting bids from private investors.
Already, a lease on the Nzoia Sugar Factory has been confirmed. It was leased to businessman Jaswant Rai for 30 years, a move that the employees and local sugar farmers have rejected. Both the workers and farmers are rejecting the lease, saying it will disadvantage them.
Farmers and workers at Nzoia Sugar say they were not involved in the plan. They want the government to settle their dues before the company's management changes hands. Workers said they are owed millions in salary arrears of up to 28 months.
Nyong'o claimed that some of the companies involved in the leasing process were fairly young in the sugar industry, raising concerns about their capacities and motives.
This is not the first time Raila and his lieutenants in ODM have disagreed openly since the party entered into the deals for a broad-based government with President Ruto.
Previously, Nyong'o and Siaya Governor James Orengo did not agree on issues of devolution until Raila cleared the air and threw his support behind the leaders who were already receiving criticism from Ruto's allies.
