Members of Parliament from Western Kenya are piling pressure on President William Ruto to nullify the 30-year leasing agreement of Nzoia Sugar Company to a company linked to businessman Jaswant Rai. The controversial deal for state-owned sugar mills, including Nzoia, reportedly took effect on Saturday following handover ceremonies.
Speaking in Bungoma on Sunday, Kabuchai MP Majimbo Kalasinga and Bumula MP Jack Wamboka voiced their strong disapproval of the government’s handling of the Nzoia Sugar Company lease. They argued that the process lacked transparency and went against the wishes of the local leadership and residents of Western Kenya.
Kalasinga harked back to the historical significance of Nzoia Sugar Company, describing it as a legacy from Mzee Jomo Kenyatta intended to foster local employment and boost national sugar production. He emphasized that the factory was established to provide job opportunities for the youth and prevent urban migration in search of work.
The Ford Kenya MP also reminded President Ruto of his campaign promise during the 2022 general election campaigns. Kalasinga claimed that Ruto, then Deputy President, had pledged at an economic forum in Kimilili to unveil a new mill at Nzoia Sugar within 100 days if elected President. He lamented that the current leasing deal represents the opposite of that promise.
Both MPs contended that the leasing of the sugar firm disregarded the will of elected leaders, workers, and farmers, and even defied court orders. Kalasinga specifically mentioned that a court had restrained the leasing of Nzoia, and the government proceeded nonetheless. He criticized the government for allegedly not respecting legal institutions.
Kalasinga directly questioned President Ruto’s decision to consider a Rai Group company as the qualified bidder for Nzoia Sugar, referencing Ruto’s past stern warning against cartels in the sugar industry with the phrase “Mambo ni Matatu” (There are three options) while in Mumias. He questioned how the same individual previously implicated could now be taking over Nzoia.
Citing details from what he claimed were the leasing documents, Kalasinga raised concerns about a potential name change for the sugar firm. He argued that a change in name could legally complicate efforts by former workers and farmers to recover their outstanding dues, as the old entity might cease to exist legally and the new one might not be bound by the previous company’s liabilities. He noted that the Cabinet Secretary for Agriculture, Mutahi Kagwe, had reportedly directed farmers and workers to seek their dues from the government, which Kalasinga described as a challenging process for them.
Kalasinga drew a parallel between the Nzoia situation and the earlier leasing of Webuye Pan Paper, which also involved a company linked to Rai Group. He alleged that the promised revival of the paper industry at Webuye never fully materialized and that the site is now purportedly used for repackaging contraband sugar. He expressed fears that a similar fate could befall Nzoia Sugar under the new management.
The MPs announced plans to lead protests on Monday and pursue legal action to prevent the private developer from accessing the sugar factory premises. Kalasinga urged workers and farmers to join the protests and block access to the factory, asserting that it is their property.
He also called on the government to make the leasing documents public, including the lease amount, and to clarify the future of public institutions located on Nzoia farm land.
Bumula MP Jack Wamboka echoed Kalasinga’s sentiments, highlighting that the Attorney General had been involved in court proceedings that had halted the leasing. Wamboka also pointed to Rai’s past involvement with Mumias Sugar Company and Webuye Pan Paper as having a negative history, attributing the collapse of these entities partly to his influence.
Wamboka firmly rejected the Nzoia lease and vowed that they would not allow the new lessee to take control of the factory. He appealed to Bungoma leaders, including National Assembly Speaker Moses Wetang’ula and Governor Kenneth Lusaka, to implore the President to heed their concerns and revoke the tendering deal.
Lugari MP Nabii Nabwera also joined the call for the cancellation of the deal and the re-advertisement of the multi-billion shilling tender. He expressed suspicion regarding the tendering process, questioning why other sugar millers were leased to different investors while Nzoia was specifically handed over to a company linked to Rai.
