The Ministry of Agriculture has initiated the solicitation of bids for the sale of Western sugar companies as part of President Ruto’s privatization plan, as announced in local newspapers by the State Department for Agriculture. Potential investors must submit a KES 10 million deposit as security during the bidding process.
The sugar companies earmarked for sale encompass Mumias, Chemelil, South Nyanza, Nzoia, Muhoroni, and Miwani sugar factories.
In October 2023, President Ruto publicly disclosed his intent to privatize sugar companies, highlighting the objective of enhancing profitability and revitalizing the sector.
Through a public statement, he reaffirmed the government’s dedication to responsible factory management to safeguard the interests of farmers. He underscored that negotiations with private investors would prioritize delivering value to farmers and augmenting their income.
Mumias Sugar, burdened with substantial debts, including KES 545 million owed to a local bank that led to its receivership in 2019, also reportedly owes a compounded KES 4.3 billion to various lenders, including the French development finance institution Proparco.
In the recent advertisement, interested parties were directed to collect detailed documents at Kilimo House after remitting a non-refundable fee of KES 5,000. Throughout much of his inaugural year in office, the Head of State expressed his commitment to enhancing the performance of public sector sugar millers grappling with substantial debt.
