President William Ruto has advanced his plan to privatise sugar companies after the Ministry of Agriculture advertised bids from private investors.
In a notice contained in the local dailies on Tuesday, the State Department for Agriculture indicated that it was leasing public sector-owned sugar companies.
It thus demanded a deposit of Ksh10 million from prospective investors as security during the bidding process.
The Head of State first made public his plans to privatise sugar companies in October last year arguing that the move would make them profitable and revitalise the sector.
During a public address at the time, he insisted that the state would ensure prudent management of the factories to safeguard the interests of farmers.
Ruto insisted that the terms of engagement with the private investors will centre around providing value to farmers and increasing their earnings.
“We will agree with them to install new machines and pay farmers on time,” he told a congregation.
In the latest advertisement, interested parties were asked to pick detailed documents at Kilimo House after parting with a non-refundable fee of Ksh5,000.
"Tenders will be opened immediately thereafter in the presence of candidates or their designated representatives who choose to attend at Kilimo House," read the notice signed by the Agriculture Principal Secretary.
For the better part of his first year in office, the Head of State revealed that he was on a mission to improve public sector sugar millers which had been reeling under a mountain of debt.
In August last year, he authorised the State to write off Ksh117 billion owed by five government-owned companies.
"I told you that I will write off all debt at Mumias Sugar Company. I did research on the debt and the Cabinet has approved," Ruto announced to an enthusiastic crowd in Mumias Town.
Mumias Sugar had been struggling with multiple debts, including Ksh545 million owed to a local bank that saw it placed under receivership in 2019.
The sugar miller also reportedly owes a compounded Ksh4.3 billion to a slew of lenders, including French development finance institution Proparco.
Other struggling millers include Chemelil, South Nyanza, Nzoia, Muhoroni, and Miwani sugar factories.
