Ruto defends leasing of sugar factories to private investors
President William Ruto has defended the leasing of the four sugar factories to private investors, stating that the move was adopted in order to streamline the sector.
Speaking during the 62nd Madaraka Day Celebrations in Homa Bay on Sunday, June 1, 2025, Ruto detailed the strategic investments made in the agricultural sector that were aimed at increasing efficiency and productivity.
The head of state further sought to clarify the leasing process that has sparked widespread uproar, especially from leaders hailing from the western counties.
“The recent competitive leasing of four state-owned mills, Nzoia, Chemelili, Muhoroni, and Sony, is another strategic step to inject efficiency, restore profitability, and safeguard farmers’ livelihoods,” Ruto said.
“Our goal is to modernise the mills, ensure prompt payment to farmers and workers’ salaries and wages, and transform these once-struggling factories into productive and sustainable enterprises. For years, these factories were financial burdens on the exchequers, surviving only on repeated taxpayer bailouts while failing to pay farmers and workers,” he stated.
Ruto clarified that the company’s assets and its land remain leased under strict terms and not sold as widely reported.
“Let it be clearly understood that neither the factories nor the lands have been sold. They remain public properties leased under strict terms to deliver value for the benefit of farmers, workers, and the sector,” he explained.
The president’s assurance comes amid a huge uproar that followed the 30-year-old leasing of the firms.
Speaking following the takeover, senators Edwin Sifuna and Godfrey Osotsi voiced their objection to the process, citing a lack of transparency.
Sifuna wondered why the sugar companies were being leased to national investors when the tender was international.
“It is difficult for me to accept that in the entire world there are only two or three families that can run sugar companies in this country. If you put out an international tender and only two families in Kenya are responding to it, there is a problem. How is it possible that we put out an international tender and the respondents are not international people?” Sifuna asked.
On his part, Senator Osotsi took a swipe at the president, reminding him of the promise he made to the western people when he assured them that he would revive the sugar companies. Osotsi accused the head of state of going against his promises to serve his interests.
“This process is corruption in the making. We cannot allow the Nzoia Sugar Company, which farmers contributed to its existence through providing land, to be taken away very easily.
“We have been in this process before; Panpaper, which cost Ksh20 billion, was sold for a mere Ksh900 million on the pretext that it was going to be revived. Right now, when you go to the company, nothing is happening. The former employees who worked there are living in abject poverty,” he said.
