Billionaire entrepreneur Jaswant Rai has assumed control of Nzoia Sugar Factory after his company, West Kenya Sugar, secured a 30-year lease deal from the government.
In a statement on May 10, 2025, the Ministry of Agriculture and Livestock stated that West Kenya Sugar will invest Ksh 5.6 billion to rehabilitate and modernise the factory.
“In addition, the company plans to undertake extensive cane development in the region to support sustained production. Farmers supplying sugarcane to the mill will also benefit from timely payments, a move expected to boost morale and productivity in the sector,” the statement read.
The handover was led by Nzoia Sugar Company Board Chair Alfred Khang’ati.
Jaswant Rai Pledge to Local Community
During the handover, Chairman Jaswant Rai stated that the welfare of workers will be a top priority and pledged close collaboration with the local community to ensure that all stakeholders benefit from the revitalisation.
In response to previous concerns regarding regulatory compliance, Jaswant Rai reaffirmed his company’s commitment to adhering to the law.
Additionally, he said that the firm would uphold all legal standards and ensure transparency in its operations.
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Leasing of Sugar Companies in Kenya
The government completed the agreement to lease four sugar factories to private millers as part of efforts to revitalize the ailing sugar industry.
In a statement on May 30, 2025, Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe announced that the government had competitively selected four private millers to manage the factories for a period of 30 years.
The factories include West Kenya Sugar Company that assumed control of Nzoia Sugar Company, while Kibos Sugar and Allied Industries Ltd will manage Chemelil Sugar Company.
At the same time Sony Sugar Company was leased to Busia Sugar Industry, while West Valley Sugar Company Ltd will take over the management of Muhoroni Sugar Company.
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Govt Pays Off Workers
According to CS Mutahi Kagwe the move was crucial in order to infuse the necessary capital into the sugar sector. He highlighted that in the previous year the government had disbursed over Ksh1.7 billion to sugarcane farmers and Ksh.600 million to factory workers.
“The decision to lease out the four sugar factories was arrived at after lengthy consultations with key stakeholders across the sugar sector including farmers, sugar factory workers, unions, Members of Parliament, Governors and approvals by the cabinet. It was informed by the need to ensure a return on investment for taxpayers, who have, over the years, bailed out the ailing sugar sector,” the statement read.
Additionally, last year the government paid off over Ksh117 billion to bail out the local sugar industry and injected an additional Ksh2.5 billion to clear arrears owed to farmers and workers.
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