Kenya : Ruto says leasing of sugar mills to unburden taxpayers
President William Ruto has defended the government’s decision to lease four state-owned sugar mills—Sony, Chemelil, Nzoia, and Muhoroni—saying the move will end losses and increase profitability. Speaking during Madaraka Day celebrations, he said outdated factories had become burdensome, and leasing will boost efficiency, farmer earnings, and sugar production while reducing dependency on imports.
The recent move by the government to lease four sugar mills will ensure the state owned firms profitable, President William Ruto has said.
According to President Ruto, the mills had became money pits despite injection of billions of shillings to revive them.
The sugar mills which were least last month through the Ministry of Agriculture and Livestock Development include Sony Sugar, Chemelil, Nzoia Sugar and Muhoroni Sugar.
“For years, these factories were a financial burden on the Exchequer, surviving only on repeated taxpayer-funded bailouts while failing to pay farmers and workers. The government has acknowledged its limitations in managing these mills,” said President Ruto during the 62nd Madaraka Day celebrations in Homa Bay County.
Ruto said the leasing of the mills will help improve sugar production, make the mills efficient and increase earnings to farmers.
“Efficient mills are more profitable and offer farmers optimal returns. Conversely, outdated mills, some of which run on plants that are over 50 years old, recover only one tonne of sugar from nearly 20 tonnes of cane, short-changing our growers and robbing them of their sweat,” he noted.
As of last year, sugar production surged to 815,000 metric tonnes from 490,000 metric tonnes in 2023 cutting down imports by up to 70pc.
During the period, farmers’ earnings also increased from Ksh 50 billion to Ksh 90 billion.
Ruto backs strategic investments in agriculture to accelerate growth and enhance resilience in the sector.
“Fertiliser subsidies have boosted food production by 50%, while reforms in the coffee and sugar sectors have revived local industries, enhanced farmer incomes, created jobs, and reinvigorated rural economies. Today, milk farmers are earning KSh50 per litre, up from Ksh 35. Coffee farmers are now earning up to Ksh 150 per kilo, a remarkable increase from an average of Ksh 65. Tea earnings rose from Ksh138 billion in 2022 to Ksh 215 billion in 2024,” he stated.
On transport and infrastructure investment, the President said discussions have been concluded on the extension of the Standard Gauge Railway (SGR) from Naivasha to Kisumu and onward to Malaba, while construction of Mau Summit – Rironi to a dual carriageway is set to begin in July this year.
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Source : KBC
