Restored milling capacity, farmer income restoration, employment creation, sugar production, reduced imports, cane farmer payment resumption
Nzoia Sugar Company Rehabilitation and Lease
Rehabilitation of the Nzoia Sugar Company factory in Bungoma after 30-year lease to West Kenya Sugar Company at KSh 5.6 billion.
AnnouncedJanuary 1, 2024
StartedMay 10, 2025
Expected CompletionMay 10, 2055
Financials
Offering PriceKsh 5,600,000,000KES
Timeline
Nzoia Sugar Established
Nzoia Sugar Company commenced operations with initial milling capacity of 2,000 TCD
Capacity Increase
Milling capacity increased from 2,000 to 3,000 tonnes of cane per day
Financial Decline Begins
Financial challenges began with delayed salaries, reduced services, and deteriorating operations
Court Order Halting Lease
Court issued order halting the lease of Nzoia Sugar to West Kenya Sugar Company
Lease Handover Despite Protests
Government handed over management to West Kenya Sugar Company despite court order and violent protests by western Kenya leaders
Corruption Case Against Former MD
Corruption case against former MD Godfrey Sifuna Wanyonyi and seven executives proceeded in Bungoma Anti-Corruption Court
Factory Resumes Operations
Nzoia Sugar resumed milling at full 3,000 TCD capacity after seven-month shutdown and extensive rehabilitation
Scandals & Controversies
Financial Decline Begins
January 1, 2000Financial challenges began with delayed salaries, reduced services, and deteriorating operations
Court Order Halting Lease
April 23, 2025Court issued order halting the lease of Nzoia Sugar to West Kenya Sugar Company
Lease Handover Despite Protests
May 10, 2025Government handed over management to West Kenya Sugar Company despite court order and violent protests by western Kenya leaders
Corruption Case Against Former MD
August 1, 2025Corruption case against former MD Godfrey Sifuna Wanyonyi and seven executives proceeded in Bungoma Anti-Corruption Court
Contractors
West Kenya Sugar Company
Lessee / OperatorPrivate sugar company owned by Jaswant Rai that secured 30-year lease and rehabilitated the factory
Politicians Involved
William Ruto
PresidentChampioned the lease program, pledging not to allow cartels to derail the process
Kenneth Lusaka
GovernorBungoma Governor who appealed for completion of stalled county road projects alongside the sugar revival
George Natembeya
Former Governor, Trans NzoiaVocal critic of the lease, accused government of selling off public assets
Benefits
Description
Nzoia Sugar Company, established in 1975 in Bungoma County, is a state-owned sugar miller that has undergone major rehabilitation following a controversial 30-year lease to West Kenya Sugar Company owned by billionaire Jaswant Rai. The factory, 5km from Bukembe off the Webuye-Bungoma highway, had been struggling with KSh 128 billion collective debt across state sugar mills, outdated technology, and financial mismanagement. After the lease handover on May 10, 2025, operations had ceased. West Kenya Sugar invested in extensive overhaul of main power turbines, mill turbines, roller shells, boiler tubes, milling units, and automation of key factory sections. By December 2025, the factory resumed milling at its full installed capacity of 3,000 tonnes of cane per day, with 101 new tractors acquired. The lease was met with fierce political opposition and protests, with a court order initially halting the process.
Overview
Major economic lifeline for Bungoma County and western Kenya's sugar belt. The factory supports over 23,500 hectares of outgrower zone and a 3,600-hectare nucleus estate, directly impacting tens of thousands of farmers and workers. Its revival could help Kenya become a sugar exporter.