Nzoia Sugar Factory is set for a major transformation after the government officially leased it to private investor Jaswant Rai for a period of 30 years, marking a new chapter in the troubled miller’s operations.
Confirming the deal, Nzoia Sugar Factory Board Chairman Alfred Khang’ati said the lease agreement has already been signed, and Rai is expected to take over the factory’s operations as early as next week.
“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,” added Board Member Bonface Otsiula.
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Khang’ati assured farmers that the new management would prioritize their welfare, with more than Ksh.200 million earmarked for pending payments before the end of the current financial year. He also noted that all current workers will be retained for at least one year to allow for a smooth transition.
“We are looking at the wider public interest, which involves the welfare of the farmers and staff who have not earned salary from 2022 to date, and they have persevered,” he said.
The move to lease the factory, which has long been plagued by financial instability and operational inefficiencies, is part of a broader government initiative to revamp the sugar sector through private sector involvement.
However, the process has not gone unchallenged. A legal case has already been filed contesting the lease, potentially stalling or complicating the transition in the coming weeks.
Jaswant Rai, a well-known figure in Kenya’s sugar industry, owns several other milling companies and has long been a controversial figure in debates around market dominance and miller-cartel influence. His takeover is expected to spark both optimism and scrutiny from stakeholders.
As the factory enters this new era, attention now shifts to how the new investor will address the miller’s long-standing debt, resume cane crushing operations, and rebuild trust with farmers and workers who have endured years of uncertainty.