The process of leasing four public sugar factories – Nzoia Sugar, Muhoroni Sugar, Chemelil Sugar, and Sony Sugar – commenced in May 2023 after the Cabinet and Parliament approved the leasing model over the previous privatization approach.
The international tender attracted over 40 bidders, but the process was halted by a court order obtained by a stakeholder, Martin Nyongesa Baraza, who claimed it was a privatization and sale process rather than a leasing model.
The matter has been fully prosecuted, and a judgment is awaiting. During the court proceedings, it was found that the litigant had misled the court about the nature of the process. The Attorney General’s office had indicated that the matter would be mentioned on August 8, 2024, but no further briefing has been provided since then.
In anticipation of a favorable ruling, a meeting was held in the Treasury on August 6, 2024, to restart the leasing process. The government remains committed to this initiative, which aims to revive the struggling public sugar factories and improve the efficiency of the sector.
The article highlights the challenges faced in the leasing process, including the legal hurdles and the need to provide accurate information to stakeholders. The government’s efforts to move forward with the leasing model, despite the obstacles, demonstrate its determination to address the longstanding issues in the sugar industry.
About The Author
