Kisumu Governor Anyang’ Nyong’o on Friday, May 9, dismissed reports of a rift between him and former Prime Minister Raila Odinga, particularly regarding the plan to lease sugar factories.
Through a statement, Nyong’o asserted that his position on the issue was in line with that of Raila, noting that both of them supported the government’s plan to lease key sugar factories to private investors.
However, Nyong’o seemingly highlighted the bone of contention, calling for a fair and competitive process in the plan to lease the factories.
“Recent media reports have created a false impression that the Rt. Hon. @RailaOdinga and I are at odds over the leasing of sugar factories. This is not the case. We are fully aligned on this issue,” Nyong’o stated.
“Our shared position is clear: the government must exit the management of these factories and instead lease them to private investors through a competitive and transparent process,” he added.
Raila on Thursday, May 8, had expressed his support for the government’s leasing plan, stating that the move was necessary for economic growth.
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.
In a discussion with Agriculture Cabinet Secretary Mutahi Kagwe about changing the fortunes of the sugar sector, Raila expressed that the leasing would also contribute to food security.
"Discussions also centred around the strategic leasing of sugar mills, an effort aimed at revitalising the sugar industry and ensuring long-term sustainability for farmers and other stakeholders. Raila expressed keen interest and support for these reforms, recognising their potential to spur rural economic growth and food security," ODM Communication Strategist Philip Etale said in a statement soon after the meeting.
However, Raila’s position contradicted that of his close ally Nyong’o, who 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.
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.
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.
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 both expressed their disappointment with the agreement between the two leaders and on issues of devolution.
