A fresh twist has emerged in the ongoing debate over the leasing of state-owned sugar factories after Kisumu County Women Representative Ruth Odinga linked the recent raid on Chemelil Sugar Academy to disputes over the management of Chemelil Sugar Company, which sent 400 workers home.
Speaking in Kisumu on June 20, 2026, she said the incident should not be viewed as an isolated criminal act but as part of wider tensions affecting institutions associated with Chemelil Sugar Company.
Ruth Odinga argued that the conflict emerged after the leasing of public sugar millers and has affected workers, farmers and community institutions. She claimed that disagreements over the management of resources and operations have created unrest in the region. The MP called for a full investigation into the school incident and urged authorities to examine any links between the attack and the broader disputes within the sugar sector.
“But I must be honest with you: this attack cannot and should not be treated as an isolated case of thuggery. It did not happen in a vacuum. It happened in the middle of a dispute over who controls that school’s accounts and its fees – a dispute that only exists because of the much larger, much more dangerous conflict now unfolding across our sugar belt following the leasing of our publicly owned sugar millers,” Ruth Odinga said.
She also called for an urgent meeting to bring together factory lessees, workers, farmers, parents, and regional leaders to address concerns arising from the leasing process. Odinga further urged the Ministry of Agriculture and the Transition Committee overseeing the leasing program to respond to questions raised by local communities.
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Ruth Odinga Confirms 700 Chemelil Sugar Workers Sent Home
In her statement, Ruth Odinga raised concerns about the situation at Muhoroni Sugar Company, stating that employment levels have fallen significantly since the company was leased. According to her, the workforce has dropped from more than 1,000 employees at the time of leasing to about 300 workers currently.
She said the reduction amounts to the loss of roughly 700 jobs beyond the worker-retention threshold set by the transition guidelines, claiming that workers and trade unions have expressed concerns over reduced staffing levels, increased workloads and changes in employment conditions since the leasing process began.
“Employment has fallen from over a thousand workers at the point of leasing to roughly three hundred today, far below the eighty percent retention that the Transition Committee guidelines require. Our trade unions tell me they have effectively been locked out, with workers facing reduced salaries and doubled workloads. I have received deeply troubling reports of deaths among factory staff linked to the stress of these conditions,” she explained.
The MP also alleged that some workers have experienced salary reductions while carrying out additional responsibilities. She called on the Transition Committee to conduct an audit of staffing levels and publicly account for compliance with employee retention requirements. She further urged authorities to address concerns surrounding terminal benefits owed to former workers.
Also Read: Ruth Odinga Breaks Silence on ‘Disrespecting’ Her Elder Brother Oburu Oginga
The Attack
The attack occurred on June 18, 2026, as students were returning to Chemelil Sugar Academy after the half-term break.
According to Ruth Odinga, a group of between 20-and-30-armed men entered the school compound through the main gate and targeted the offices of the Chief Principal and Deputy Principal.
During the incident, several staff members were assaulted and four sustained injuries. No students were harmed, and all 457 learners at the institution were reported safe and accounted for.
Police responded to the scene and arrested three suspects in connection with the attack.
Odinga welcomed the arrests but called on investigators to pursue all remaining suspects. She maintained that the incident should be fully investigated to determine whether it was connected to ongoing disputes involving the management of Chemelil Sugar Company and institutions linked to the sugar sector.
Chemelil Sugar Leasing Dispute
The current debate over Chemelil Sugar Company has its roots in the controversial leasing process that unfolded in 2025. Although the dispute was officially resolved when Kibos Sugar & Allied Industries took over the factory on May 10, 2025 under a 30-year lease agreement, the deal faced strong opposition from workers, political leaders and sections of the local community.
During the leasing process, Chemelil workers protested the agreement, describing it as secretive and irregular. Several leaders from Kisumu, including Governor Anyang’ Nyong’o, also opposed the lease, citing concerns over transparency and the level of consultation with farmers.
Despite the objections, the government proceeded with the transaction as part of a broader sugar sector revival programme that included the leasing of Chemelil, Muhoroni, Sony and Nzoia sugar companies. The initiative was aimed at revitalizing the industry and benefiting about 60,000 sugarcane farmers.
Following the takeover, Kibos Sugar invested approximately KSh 4.5 billion in modernization and rehabilitation works. The factory later resumed full operations in October 2025 after the upgrades were completed.
Under the lease agreement, Kibos Sugar is required to pay KSh 40,000 per hectare annually and an additional KSh 4,000 for every tonne of sugar produced. The company also made a one-off goodwill payment during the first year of the lease.
Separate from the leasing dispute, longstanding land ownership claims remain unresolved. More than 5,400 Kajulu residents continue to seek the repossession of about 46,000 acres of land, including areas linked to Chemelil, following the expiry of historical 99-year leases between 2002 and 2005. However, the land dispute has not stopped the implementation of the current leasing arrangement.
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