Tag: Nzoia Sugar Company

  • High Court dismisses petition against Nzoia Sugar lease

    High Court dismisses petition against Nzoia Sugar lease

    The High Court has dismissed a petition by Athanas Wafula Wamunyinyi challenging the leasing of Nzoia Sugar Company, clearing the way for West Kenya Sugar Company—a subsidiary of the Rai Group—to proceed with its Ksh 5.76 billion investment in the struggling miller.

    In a judgment delivered virtually by Justice Lawrence N. Mugambi, the court upheld preliminary objections filed by the State and other parties, ruling that Wamunyinyi’s petition was res judicata (already adjudicated). The court found that the issues raised—particularly the alleged lack of public participation in the leasing process—had been conclusively settled in Martin Nyongesa Barasa v Cabinet Secretary, Ministry of Agriculture & Others (Petition No. E065 of 2024).

    West Kenya Sugar, part of the Rai Group, secured the lease for Nzoia Sugar under the government’s plan to revitalize state-owned millers. The company has committed Ksh 5.76 billion to modernize the factory and boost production.

    Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe recently commended West Kenya Sugar for its farmer-friendly policies, including:

    1. Weekly payments to over 120,000 contracted farmers, totaling Ksh 14 billion annually.
    2. Timely monthly wages for employees.
    3. Ksh 7 billion annual investment in cane development initiatives.

    The court’s decision solidifies the leasing process (Tender No. MOALD/SDA/IT/001/2024-2025), ensuring Nzoia Sugar’s transition to private management under West Kenya Sugar’s stewardship.

    In a related development, the government yesterday disbursed Ksh 200 million to settle part of outstanding sugar factory workers salaries, bringing total payments to Ksh 800 million.

  • There are no plans to sell Nzoia Sugar Company, Wetang’ula says

    There are no plans to sell Nzoia Sugar Company, Wetang’ula says

    National Assembly Speaker Moses Wetang’ula dismissing allegations of plans to sell Nzoia sugar factory saying the State has put the necessary measures to revive the company.

    Wetang’ula said the Ksh1.7 billion approved by MPs through a Supplementary Budget will significantly support the revival plans for the ailing sugar sector in the country.

    He stated that Ksh.300 million, part of the Sh1.7 billion, will be disbursed to Nzoia factory in Bungoma County.

    While dismissing allegations of plans to sell the struggling Nzoia sugar factory, Wetang’ula said that Ksh.300 million, part of the Sh1.7 billion, will be disbursed to the miller in Bungoma County.

    “Leaders preaching propaganda that Nzoia is set for sale are prophets of doom. In two weeks, Agriculture Cabinet Secretary Mithika Linturi will visit the factory to deliver the money. This will shame the rumor mongers,” said Wetang’ula.

    Out of the Ksh300 million, Speaker Wetang’ula explained that Ksh250 million will be used to settle debts owed to farmers, and the remaining Ksh50 million will go towards paying pending employees’ salaries.

    Speaking during the funeral service of Antony Namisi Maloba at Mukhweya village, Kabuchai constituency, Bungoma County, the Speaker takes issue with area MP Majimbo Kalasinga, accusing him of being used by his political detractors to spread propaganda about the mill.

    “Go slow on Nzoia sugar matters. You (Hon. Kalasinga) were among MPs who accompanied me when we met President Ruto over Nzoia sugar woes, and the Head of State was clear that the factory will not be sold. Please tell the farmers the truth,” Wetang’ula tells Kalasinga, who was present during the funeral.

    He lashed out at former Cabinet Secretary Eugene Wamalwa and former Kanduyi MP Wafula Wamunyinyi for using the miller’s woes to revive their dead political careers.

    “I want to tell Wamalwa and Wamunyinyi their campaigns to use Nzoia sugar company to resurrect their political careers are doomed to fail. Nzoia is not a resurrection garden,” said Wetang’ula.

    The Speaker noted that he is pleased that the sugar mill is on the recovery path as it is crushing cane, among other production activities.

    “The good news is that Nzoia sugar factory has resumed crushing activities, and farmers are being paid their dues two weeks after the delivery of cane,” he pointed out.

    Wetang’ula urges farmers to take advantage of the revival plans outlined by the government to grow cane and support the factory to attain full crushing capacity.

    He added that he will accompany Hon. Linturi when he tours the factory to deliver the cash and address farmers to outline the recovery plans the Ministry has put in place to restore its lost glory.

    “On Friday next week, I have organized a meeting between the President and Bungoma County leaders to make a follow-up on the status of the projects the Head of State promised residents during his visit to the county,” he said.

    The Speaker noted that the National Assembly is committed to supporting plans to revive ailing sugar factories in the country.

    He emphasized that the majority of farmers, especially from the Western region, have suffered following the collapse of the mills, noting that the government will bail them out by reviving the factories.

    The Speaker assured that the National Assembly will ensure that funds allocated for the revival of the factories are used for the intended purpose.

    The Speaker was accompanied by MPs, including Bungoma Senator Hon. Wakoli Wafula, Women Representative Catherine Wabiliand, Dr. John Chikati (Tongaren), Martin Pepela (Webuye East), Hon. Ferdinand Wanyonyi (Kwanza), Hon. Majimbo Kalasinga (Kabuchai), and Hon. Kakai Bisau (Kiminini).

    The MPs dismissed claims that Nzoia sugar company is on the verge of being sold.

  • Ruto: Gov’t will support Nzoia Sugar Company revival programmes

    Ruto: Gov’t will support Nzoia Sugar Company revival programmes

    President William Ruto has said the Government will fund the revival of Nzoia Sugar Company to boost its operations.

    The President said the Government will also provide funds to aid in the cultivation of its Nucleus Estate and overhaul the company’s obsolete equipment.

    He said the move seeks to increase the company’s sugar cane production and milling capacity for it to operate optimally.

    “We want to ensure this factory flourishes, spurs economic growth and expands employment opportunities for the people of Nzoia and its environs,” he said.

    Ruto spoke on Monday during a tour at Nzoia Sugar Company at Kanduyi in Bungoma County.

    The President said the Government will change the management of the company to a professional and private management.

    “We are going to have a new management model that is going to serve the interests of the public and farmers,” he assured

    In addition, the President said the government has constructed and equipped more than 150 technical and vocational institutes across the country.

    He noted that it was part of the government’s commitment to equipping the youth with market-ready competence in an effort to eradicate unemployment in the country.

    Ruto explained that the Government is deliberately implementing programmes that will absorb students from tertiary colleges, citing County Aggregation and Industrial Parksand the Affordable Housing Projects.

    “Our goal is to equip youth with practical skills so that we can employ them upon completion,” he said.

    “For the first time we have a compressive plan for creating jobs for the youth using deliberate government programmes,” he added.

    At Nabing’eng’e in Bungoma County, he officially opened the Bungoma North Technical andVocational College.

    Earlier, in Kopsiro, he inspected the ongoing construction of the Chepkurkur TechnicalTraining Institute whose primary subject of focus will be smart agriculture.

    “The practical knowledge gained particularly on agriculture will add value and help us explore fully the region’s huge farming potential,” he said.

    He said the government is establishing ICT hubs in every ward across the country to ensure youth benefit from digital job opportunities.

    In Sang’alo, Kanduyi, Bungoma County, he launched the Bungoma County Aggregation andIndustrial Park.

    The President said the government is establishing county aggregation and Industrial parksin every county to enhance counties’ value addition capacity and create jobs.

    “This intentional investment will spur higher value-added production, create more employment and boost our exports that will spur inclusive and sustainable growth in the country,” he said.

    The President said the government has opened the second phase of farmers registration to ensure every farmer has adequate fertiliser.

    He said the Government will bring subsidized fertilizer distribution centers closer to the farmers to ease the process.