South Nyanza Sugar Company (Sony) in Migori County faces a possible sale of its major land parcel after Co-operative Bank issued a 40-day statutory notice over an outstanding debt of KSh862.3 million.
In a notice dated July 14, the bank says it intends to sell a land parcel registered under Sony Sugar unless the outstanding debt is settled within the prescribed period.
The development has raised concern, with Awendo MP Walter Owino saying he is engaging relevant authorities and legal stakeholders to prevent the sale of the public asset.
Co-operative Bank Demands KSh862.3 Million
According to the notice, the company owed Co-operative Bank KSh862,328,980.41 as of July 14, 2026, under a credit facility advanced to the company.
The bank said the facility was secured, among other securities, by a legal charge over L.R. No. 16339/1 and a first-ranking All Asset Debenture in its favor.
Also Read: Nairobi County Starts Auctioning Select Property Owners with Immediate Effect
The notice follows an earlier 90-day statutory demand notice dated August 13, 2025, which the bank says the company did not rectify the default.
Co-operative Bank notified SONY Sugar that it would exercise its statutory power of sale after the expiry of 40 days from the date of service of the latest notice, unless the default is corrected and the outstanding balances are fully settled.
Land Used as Security for Bank Facility
The property at the center of the dispute is identified in the notice as L.R. No. 16339/1. The bank says it charged the land to secure the facility extended to the company.
The notice cites Section 96(1) of the Land Act, 2012, together with Section 90(3)(e), as the legal basis for the intended exercise of the statutory power of sale.
Co-operative Bank also warned that it would accept any repayment arrangements entered into with the company, or payments made after the date of the notice, strictly on account and without prejudice to its right to enforce the securities.
According to the notice, negotiations would not prevent the bank from selling the property unless the outstanding requirements are addressed in a manner acceptable under the legal process.
The company has previously faced financial difficulties, including debt levels at the state-owned sugar manufacturer, including non-performing obligations.
Also Read: Govt Reduces Sugarcane Prices to KSh5,500 Per Tonne
Walter Owino Opposes Reported Sale
Awendo MP Walter Owino has raised concerns over the auctioning of land belonging to the company, saying he opposes any move that would result in the loss of the property.
In a statement, Owino said he was actively engaging relevant offices, authorities and legal stakeholders to resolve the matter amicably and in the public interest.
He said the land was a public asset and linked its protection to the livelihoods of sugarcane farmers and factory workers who depend on the company.
Owino also urged members of the public and other stakeholders to remain calm as legal.
“I have seized of this matter and am actively engaging the relevant offices, authorities, and legal stakeholders to resolve this issue amicably and in the best interest of the public. I stand strongly opposed to any auctioning of Sony Sugar land, and I remain fully committed to safeguarding public property and protecting the livelihoods of our farmers and factory workers,” said Owino.
Follow our WhatsApp Channel and X Account for real-time news updates.
