Billionaire businessman Jaswant Rai, through his company West Kenya Sugar, has officially taken over the operations of Nzoia Sugar Factory after securing a 30-year lease agreement from the government.
The move marks a significant step in the ongoing efforts to revive Kenya’s struggling sugar industry.
In a statement released by the Ministry of Agriculture and Livestock, the government confirmed that West Kenya Sugar will invest sh 5.6 billion to rehabilitate and modernize the Nzoia Sugar Factory.
The investment is aimed at reviving sugar production, boosting efficiency, and supporting farmers through improved services.
“In addition, the company plans to undertake extensive cane development in the region to support sustained production.
Farmers supplying sugarcane to the mill will also benefit from timely payments, a move expected to boost morale and productivity in the sector,” the ministry stated.
The official handover was led by Nzoia Sugar Company Board Chair Alfred Khang’ati.
During the event, Jaswant Rai assured workers and residents that the welfare of employees and collaboration with the local community would be prioritized under the new management.
“Our focus is on inclusive growth. The well-being of workers is key, and we intend to work closely with farmers and the surrounding community to ensure that everyone shares in the benefits of this revitalisation,” Rai said.
Responding to past regulatory concerns, Rai reaffirmed West Kenya Sugar’s commitment to full legal compliance, transparency, and accountability in its operations.
The Nzoia handover is part of a broader government strategy to revive the sugar sector by leasing public factories to private operators.
Agriculture Cabinet Secretary Mutahi Kagwe confirmed on May 30, 2025, that four factories had been leased through a competitive process: Nzoia Sugar Company – to West Kenya Sugar Company, Chemelil Sugar Company – to Kibos Sugar and Allied Industries Ltd, Sony Sugar Company – to Busia Sugar Industry, Muhoroni Sugar Company – to West Valley Sugar Company Ltd.
CS Kagwe said the leases were critical to attracting fresh capital and modern management practices into the sector.
“In the last financial year alone, the government disbursed over Ksh 1.7 billion to sugarcane farmers and Ksh 600 million to factory workers.
Taxpayers have consistently bailed out this sector, and it was time to ensure sustainable returns,” he said.
He added that the government previously cleared sh 117 billion in historical debts owed by sugar factories and injected an additional sh 2.5 billion to settle arrears owed to farmers and workers.
The restructuring is expected to breathe new life into Kenya’s sugar industry, which has long struggled with mismanagement, mounting debts, and outdated infrastructure.
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