President Willam Ruto. (Photo/X).
By Daisy Okiring
President William Ruto has dismissed three chairpersons of state-owned sugar companies with immediate effect, signaling a decisive shift in Kenya’s sugar sector governance just days after leasing the factories to private investors.
In a notice issued on Monday, May 12, the President revoked the appointments of John Nyambok, who chaired Chemelil Sugar Company; Alfred Khang’ati, the former chair of Nzoia Sugar Company; and Jared Opiyo, who headed South Nyanza Sugar Company (Sony Sugar). The statement did not detail reasons for the sackings but came shortly after the government finalized the leasing of the same mills to private firms.
Kagwe’s confirmation
On Saturday, May 10, Agriculture Cabinet Secretary Mutahi Kagwe confirmed that four state-run sugar factories had officially been leased to private millers under 30-year contracts. Kagwe said the decision was the result of broad consultations involving sugarcane farmers, factory workers, union representatives, county governments, and the national Cabinet.
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West Kenya Sugar Company has taken over operations at Nzoia Sugar, while Kibos Sugar and Allied Industries Limited assumed control of Chemelil Sugar. Sony Sugar was handed over to Busia Sugar Industry, and Muhoroni Sugar Company will now be operated by West Valley Sugar Company.
The leasing program is part of a broader government plan to inject capital, reduce losses, and enhance efficiency in the struggling sugar sector, which has faced years of financial mismanagement and declining output. Kagwe said the move would also ensure taxpayers no longer bear the burden of bailing out non-performing factories.
Disbursed Sh1.7 billion
In a related development, President Ruto on May 9 announced that the government had already disbursed Ksh1.7 billion to settle debts owed to farmers and employees linked to the state-owned mills. He noted that these payments included individuals who had not supplied sugarcane or worked actively in recent periods, in a bid to close long-outstanding obligations.
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Ruto emphasized that the government’s role is not to run sugar businesses but to create a functional, investment-driven environment that allows industries to thrive independently. He added that sugarcane production has increased significantly in 2025, with cultivated acreage rising by 200,000 acres and the volume of sugarcane crushed increasing from 490,000 to 815,000 metric tonnes over the past two years.
With the restructuring now underway, the removal of the three board chairpersons clears the path for private operators to assume full control without political interference, as the sector transitions toward commercial sustainability.
