National Assembly Speaker Moses Wetang’ula has moved to clarify reports suggesting that the government is planning to sell Nzoia Sugar Company to a private investor.
Speaker Wetang’ula in a statement on Sunday, May 4, sought to dispel growing public concern over the future of the struggling state-owned miller, which is based in Bungoma County.
He dismissed the reports stating that the land where the miller is based is government-owned.
The Speaker emphasized the importance of focusing on development and not being sidetracked by falsehoods.
Wetang’ula dismisses sale of State-owned miller
He further reiterated that Bungoma is on a path toward attaining city status, which he said would usher in infrastructure development, increased investment, and expanded economic opportunities for residents.
“To dispel misinformation, no one is selling Nzoia Sugar. That land belongs to the government. All debts will be paid, and any pending matters will be resolved transparently. Misinformation must not distract us from progress,” said Wetang’ula.
“Bungoma has what it takes to become a city, and that is the direction we are headed. City status will bring with it infrastructure, investment, and new opportunities for our people.”
The statement comes after reports emerged that Nzoia Sugar Factory will be leased to a private investor.
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Citizen TV reported that the factory’s board chairman, Alfred Khang’ati, has confirmed that businessman Jaswant Rai won the 30-year lease and is expected to take over next week.
Nzoia Sugar factory take-over
According to the report, Khang’ati said that farmers are set to receive more than Ksh200 million in pending payments before the end of this financial year, and workers will remain under the new management for the next year to allow a smooth transition.
However, the process faces a legal challenge, with a court case already filed.
“In the coming week or the week after, they will no longer belong to the government. Some private enterprises will have taken over. The aspect of privatisation or leasing is for 30 years. A lease agreement has already been signed between the government and the lessee,” Nzoia Sugar Factory board member Bonface Otsiula stated.
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The new developments come after the Ministry for Agriculture and Livestock Development invited bids from interested and eligible firms for the leasing of Nzoia Sugar and Chemelil Sugar companies.
In a notice on February 28, the State Department for Agriculture invited bids for the leasing of the two sugar millers under numbers MOALD/SDA/IT/001/2024/2025 (Nzoia Sugar) and MOALD/SDA/IT/002/2024/2025 (Chemelil Sugar).
Completed tender documents were to be received on or before Friday March 21, 2025, at 11.00 am.
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