Kenya: Govt Insists Sugar Factories Not Sold, Only Leased
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has firmly defended the government’s decision to lease state-owned sugar factories, assuring the National Assembly that no public assets have been sold.
Appearing before the Agriculture Committee, CS Kagwe clarified that the leasing process was conducted transparently and had received full parliamentary approval.
The clarification comes amid mounting public concerns and political speculation over the fate of key sugar millers in the country. Some stakeholders have questioned whether due process was followed, with calls for full disclosure of agreements and the identities of leaseholders.
ICS Kagwe dispelled these claims and emphasized the government’s commitment to accountability and openness.
“No sugar factory has been sold. It’s leasing that has been done, and Parliament approved the whole process. I dismiss assertions that the process was opaque considering all stakeholders were involved,” said Kagwe.
“We are ready to submit any document for scrutiny by Parliament and the general public, as requested by Hon. Ruth Odinga, to assure the public on the lease process.”
Kagwe’s appearance before the House Committee followed sustained pressure from legislators seeking clarity on how the leasing decisions were reached.
There has also been concern over the level of public participation and whether local communities were adequately consulted or represented in the arrangements.
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Committee Chair and Tigania East MP John Mutunga supported the CS’s statement, reiterating that the leasing process underwent legislative scrutiny and that Parliament was actively engaged throughout.
“The sugar leasing process was taken through Parliament; that’s why other members are not worried. The leasing process was not restricted and if you feel the lessees are not good enough, you could have tendered,” said Mutunga.
The leasing strategy was developed to revitalize country’s ailing sugar industry, which has long struggled with inefficiency, mismanagement, and financial losses.
The government has maintained that private sector participation through leasing would help bring in capital, improve operational capacity, and stabilize the industry without privatizing public assets.
CS Kagwe reassured Parliament that the government is prepared to furnish all relevant documentation and maintain transparency to allay any lingering doubts.
He insisted that no corners were cut and that the process was open to all qualified bidders.
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