NAIROBI, Kenya, June 7 — The government has finalized the leasing of Muhoroni Sugar Company and Chemelil Sugar Company, a significant step in efforts to revive Kenya’s struggling sugar sector.
According to Principal Secretary for Agriculture and Livestock Development Paul Rono, West Valley Sugar Company has secured a 30-year lease for Muhoroni Sugar (in receivership), while Kibos Sugar and Allied Industries Limited will take over Chemelil Sugar Company under a similar arrangement.
“The bids received were evaluated and tenders were awarded,” Rono told members of Parliament. “The leasing is now complete.”
The international tender process, which ran from February 28 to March 25, 2025, underwent a thorough evaluation based on Public Procurement and Asset Disposal Regulations, 2020. Only bidders who scored 80 percent or above in the technical phase proceeded to financial assessment.
The handover of the facilities was conducted on May 10, 2025.
This leasing initiative comes amid growing pressure from lawmakers to reform the sugar sector, long plagued by mismanagement, debt, and underperformance.
The Ministry said the leases are expected to attract fresh capital, create employment, and improve livelihoods for sugarcane farmers, particularly in western Kenya.
Beyond sectoral reform, the move is also part of the government’s broader plan to lease loss-making parastatals and raise revenue in support of the 2025/2026 national budget.
