President William Ruto has defended the government’s recent decision to lease four state-owned sugar mills, saying the move is aimed at turning the struggling firms into profitable ventures.
Speaking during the 62nd Madaraka Day celebrations in Homa Bay County, Ruto said the factories—Sony Sugar, Chemelil, Nzoia Sugar, and Muhoroni Sugar—had become financial burdens despite repeated bailouts.
“For years, these factories were a drain on public resources, unable to pay farmers or workers. The government has accepted that it cannot efficiently run them,” he said.
Ruto emphasized that leasing the mills would enhance efficiency, boost sugar output, and increase farmers’ incomes. He criticized the outdated technology used by some mills, noting that some plants over 50 years old extract just one tonne of sugar from nearly 20 tonnes of cane.
“Efficient mills translate to better returns for farmers. Modernization is not optional—it’s necessary,” he said.
Thanks to recent reforms, sugar production rose to 815,000 metric tonnes last year, up from 490,000 tonnes in 2023, reducing imports by 70%.
Over the same period, farmer earnings jumped from Ksh 50 billion to Ksh 90 billion.
Ruto reaffirmed his administration’s commitment to strategic investments in agriculture to drive growth and resilience in the sector.
