KEPSA throws weight behind the government’s plan to lease sugar mills

The Nzoia Sugar Company
The Nzoia Sugar Company

The Kenya Private Sector Alliance (KEPSA) has put it’s weight behind the proposed leasing of five state-owned sugar mills, terming it a move to improve competitiveness in the sugar sector.

According to the business umbrella CEO, the bid to lease the sugar mills-Nzoia, Chemelil, South Nyanza, Muhoroni, Miwani sugar companies- will benefit all stakeholders including suppliers, transporters, production, service and support extension workers, and farmers in the respective regions.

KEPSA CEO Mrs Carol Karuga reiterated that KEPSA was one of the stakeholders who recommended leasing of the sugar companies. She added that the sector will experience a revival with the right investors on board.

She further said that leasing out of the mills will enable the private sector to improve the existing facilities, improve expertise and enhance competitiveness of Kenyan Sugar in both local and global markets.

Under the move, the winning bidders will lease the factories for at least 25 years, operate them and produce sugar as private entities while the Government will continue owning the assets. A section of Western political leaders have also opposed the proposed move to lease the sugar factories citing the exclusion of farmers who are the main stakeholders.