State sugar millers leasing close as boards disbanded

A dilapidated Miwani Sugar Company in Kisumu County in this September 2016 photo. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Other than Nzoia, Chemelil and Sony sugar, the government will issue a leasehold period of 25 years to Muhoroni and the neighbouring Miwani, which are under joint receivership.
  • Leasing of the three mills kicked off on Tuesday when a total of 29 companies expressed their interest to run the struggling companies.

Agriculture Cabinet Secretary Peter Munya has revoked the appointment of board members of State-owned sugar millers as Kenya moves to lease them out.

In a special gazette notice issued on Wednesday, the CS dissolved Nzoia, Chemelil and Sony sugar company boards with effect from July 16, 2020.

“It is notified for the general information of the public that the Cabinet Secretary for Agriculture, Livestock, Fisheries and Cooperatives has revoked the appointment of the members of the board…” said one of the notices. Those affected by the move include Nzoia Sugar chairman Joash Wamang’oli, businessman Zedekiah Bundotich of Chemelil and their counterpart from Sony Sugar,  Mr Owino Likowa.

Leasing of the three mills kicked off on Tuesday when a total of 29 companies expressed their interest to run the struggling companies.

Other than Nzoia, Chemelil and Sony sugar, the government will issue a leasehold period of 25 years to Muhoroni and the neighbouring Miwani, which are under joint receivership.

While welcoming the degazettment, chairman of the Kenya Association of Sugarcane and Allied Products (Kasap) Atyang’ Atiang’ called on the Interior ministry to guard the premises to safeguard them from vandalism.

“Regional police commanders should now put these companies on 24-hour surveillance because the directors can collude with the management and take whatever they can,” he claimed Thursday.


[email protected]