Kenya looks to lease sugar factories to help rehabilitate the industry

Kenya is embarking on a significant effort to revitalize its sugar industry by choosing to lease state-owned sugar mills to private sector players. This decision comes after years of unsuccessful attempts by the government to privatize these sugar mills. The formation of a committee late last year, headed by the agriculture minister and governors, recommended leasing as the best way forward. The state-owned sugar mills have faced challenges such as accumulated debts of up to 62 billion Kenya shillings and outdated machinery, leading to a significant decrease in operational capacity. As a result, the Kenyan market demand for sugar has not been met, forcing the country to rely on imports from other regions. The move to lease these sugar factories aims to attract local and international companies to invest in and upgrade the facilities, ultimately boosting the sugar sector and benefiting local farmers. The Kenyan sugar market has been struggling to compete effectively, with fraudulent practices impacting the industry. The revitalization of these factories is expected to enhance local sugar production, reduce reliance on imports, and improve the economy of the western Kenya region, where sugar farming is prevalent.