Farmer income, employment, sugar production, local economic development, tax revenue
Nzoia Sugar Company Revival and Expansion
Revival of Nzoia Sugar Company, leased to West Kenya Sugar Company under 30-year government lease program.
AnnouncedAugust 1, 1975
StartedOctober 1, 1978
Financials
Offering PriceKsh 5,000,000,000KES
Timeline
Company Established
Nzoia Sugar Company incorporated as sixth sugar project in Kenya
Operations Commenced
Sugar production began with 2,000 TCD capacity
Financial Decline Begins
Financial mismanagement, bloated workforce, and delayed farmer payments mark beginning of decline
Leased to West Kenya Sugar
Government leased Nzoia to West Kenya Sugar Company for 30 years under reform program
Corruption Case Filed
Former MD Godfrey Sifuna Wanyonyi and seven executives face corruption charges in Bungoma court
Scandals & Controversies
Corruption Case Filed
August 1, 2025Former MD Godfrey Sifuna Wanyonyi and seven executives face corruption charges in Bungoma court
Contractors
West Kenya Sugar Company
30-Year LeaseholderPrivate sugar company awarded lease under government reform program
Fives Cail Babcock (FCB)
Original Technical Partner (1%)French engineering firm with 1% shareholding
Politicians Involved
William Ruto
PresidentOversaw sugar sector reform including Nzoia leasing to private operators
Kenneth Lusaka
Former GovernorSupported factory revival during governorship
Benefits
Description
Nzoia Sugar Company was established in 1975 in Bungoma County and commenced operations in 1978 as Kenya's sixth sugar project. The government-owned factory (98% state shareholding) served over 67,000 outgrower farmers with a milling capacity of 3,000 tonnes of cane per day. The company declined from 2000 onwards due to financial mismanagement, political interference, bloated workforce, and obsolete technology. Farmer payments became irregular, stretching from 18 months to 48 months. As part of the government's sugar sector reform, Nzoia was leased to West Kenya Sugar Company for 30 years. Former MD Godfrey Sifuna Wanyonyi and seven executives face corruption charges in Bungoma's Anti-Corruption Court.
Overview
Key economic pillar for Bungoma County supporting 67,000 farmers and the broader western Kenya economy