William Ruto Shares Fresh Details About Lease Contract of Nzoia, 3 Other Sugar Factories
- In May 2024, the government leased four public sugar mills to private enterprises for a 30-year period
- President William Ruto shared details of the contracts, noting that no public assets in the four factories have been sold
- Ruto said his administration took the initiative to was aimed at injecting efficiency and profitability in local sugar production
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
President William Ruto has revealed new details of the contract involving the lease of four public sugar mills.
Source: Facebook
The government completed the lease of Nzoia, Chemilil, Sony, and Muhoroni Sugar factories to private entities for 30 days.
Why govt leased Nzoia, 3 other sugar firms
Speaking during the 62nd Madaraka Day celebrations held in Homa Bay County on Sunday, June 1, Ruto revealed that the lease was aimed at injecting efficiency and profitability in local sugar production.
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"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 Conversely, outdated mills, some of which run on plants that are over 50 years old, recover only one ton of sugar from nearly 20 tons of cane, shortchanging our growers and robbing them of their sweat.
The lease of the four mills is another strategic step to inject efficiency, restore profitability, and safeguard farmers' livelihoods," said Ruto.
What's contained in the contract
Ruto cleared the cloud on the contracts signed in May 2025, noting that they did not involve the sale of the company or its assets to private investors.
The head of state noted that the four companies were leased under strict terms aimed at delivering shared value and sustainability of the industry.
"Let it be clearly understood that neither the factories nor their assets, including land, have been sold. They remain public property, leased under strict terms to private sector players to deliver shared value and revive the industry for the benefit of farmers, workers, communities, the sector, and the nation," he affirmed.
The president said his administration is committed to modernising the mills, ensure prompt payment to farmers, workers' salaries and wages.
"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 of Kenya has acknowledged its limitations in managing these mills," he said.
Ruto's plans to enhance sugar farmers' pay
Ruto cited government interventions in 2024 that saw sugar production surge from 490,000 metric tons in 2023 to 815,000 metric tons.
He said the measures employed enabled the government to reduce sugar imports by 70% while increasing farmers' earnings from KSh 50 billion to KSh 90 billion.
In January 2025, Ruto launched the first-ever sugar bonus, paying over 500,000 sugarcane farmers a whopping KSh 150 million.
The head of state said the initiative was part of his government's initiative in ensuring all sugarcane farmers across the country are paid on time.
Source: TUKO.co.ke
