By Augustine Were
Local sugar farmers that their pending dues will be addressed under the forthcoming new management as the company moves through the ongoing leasing process. The announcement came as the bidding process for the privatization of Nzoia Sugar progresses, with a clear commitment to prioritize payments for those who have experienced delays.
Managing Director Hezron Kotut and Board Chairperson Alfred Khang'ati addressed the concerns of the community, urging both workers and farmers to remain patient and assured that transparency and fairness would guide the tendering process. They acknowledged the mixed reactions from the locals regarding the leasing of the company, emphasizing their dedication to resolving concerns about the fate of unpaid workers and farmers.
"We understand the anxiety surrounding unpaid dues, and we want to assure all stakeholders that addressing these payments is one of our top priorities," said Kotut. "Transparency will be key, and we are committed to ensuring that the rights of all workers and farmers are safeguarded throughout this transition."
As of now, the company has received several bids for the leasing of its operations. Details about the bid amounts will be disclosed publicly in the near future.
The ongoing leasing process is not confined to Nzoia Sugar alone but extends to other state-owned mills, including Muhoroni, Chemilil, and Sony, which were advertised simultaneously for bidding. This move follows the recommendations made by the Oparanya Taskforce, formed in 2017 during President Uhuru Kenyatta’s administration. The taskforce proposed that the government withdraw from direct involvement in sugar production, citing the sector’s challenges and complexities.
The board, which represents several counties within Kenya's sugar belt, including Bungoma, Kakamega, and Nyanza, assured stakeholders that they would remain fully informed during the process. The leasing agreement, supported by 13 governors, signals a collective commitment to reform the sugar industry in a way that benefits all parties involved.
Kotut acknowledged the lessons learned from previous management transitions at other factories such as Mumias and Panpaper, which saw significant negative impacts on workers and farmers. He emphasized that this time, the board would take the necessary steps to protect workers' and farmers' rights, with the goal of a more transparent and sustainable future for the industry.
The company’s assets, including fertile land, schools, and other infrastructure, are also set to be carefully valued to ensure that the interests of both current and former employees are honored.
The leasing process officially began on February 28 with the issuance of tender documents for international bidding. The privatization effort has been in the works for over two decades, and the current Kenya Kwanza government is placing a high priority on revitalizing the sugar industry through reforms and public involvement.
On March 25, bids for the four mills—Nzoia, Muhoroni, Chemilil, and Sony—were opened, with the government looking for improved concession models that expand beyond sugar to include molasses production, thereby ensuring that the government receives fair concession fees.
The incoming management is being encouraged to present competitive bids that reflect the full value of Nzoia Sugar Company, which includes more than 2,100 hectares of cane fields and a range of other facilities. The board remains optimistic that this privatization will help create a sustainable and promising future for the sugar sector and all its stakeholders.
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