The Lower Eastern Times Opening The Third Eye
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President William Ruto has defended the government’s move to lease four state-owned sugar mills, describing it as a critical step toward enhancing efficiency, restoring profitability, and protecting farmers’ livelihoods.
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Speaking during the 62nd Madaraka Day celebrations in Homa Bay County, Ruto emphasized that the leasing of the Nzoia, Chemelil, Sony, and Muhoroni mills was long overdue and necessary for revitalizing the ailing sugar industry.
“Improving the performance of milling facilities directly benefits our farmers,” he stated. “Efficient mills generate more profits and offer better returns to cane growers.”
He criticized the poor state of many public sugar factories, noting that some still use machinery over 50 years old, resulting in very low sugar output.
The leasing, set to take place through a competitive process, forms part of a broader government agricultural reform agenda aimed at increasing productivity and reinforcing food security.
Despite facing opposition from some leaders and farmers—concerned about possible job losses and exploitation by private firms—Ruto maintained that the initiative is designed to ensure the sector’s long-term sustainability and stimulate economic growth.
It also ties into wider efforts to lease or privatize several struggling state corporations.
The leasing plan comes in the wake of the 2023 Privatization Act, which Ruto signed into law. The legislation empowers the National Treasury to privatize state-owned enterprises without needing parliamentary consent.
According to the government, the policy shift is meant to help lower public debt and draw in private capital by offloading unproductive assets, while also turning around underperforming parastatals.
