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December 3, 2025
4h ago

Kagwe's Non-Negotiable Sugar Lease Terms Revealed

Kagwe's Non-Negotiable Sugar Lease Terms Revealed

He finally confirmed that while land, buildings, plants, and machinery were leased, motor vehicles and livestock were exempted...

✨ Key Highlights

Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe revealed the non-negotiable terms for the 30-year lease agreements of four state-owned sugar corporations to private players, which took effect on May 10, 2025. These conditions include specific rental fees, concession fees, and commitments for investment and diversification from the lessees.

  • Four sugar companies—South Nyanza, Nzoia, Chemelil, and Muhoroni—were leased to Busia Sugar Industry Ltd, West Kenya Sugar Company Ltd, Kibos Sugar & Allied Industries Ltd, and West Valley Sugar Company Ltd, respectively.
  • Annual rental fees are Kshs. 40,000 per hectare for Chemelil, Muhoroni, and Sony Sugar, and Kshs. 45,000 per hectare for Nzoia. Concession fees are set at Kshs. 4,000 per tonne of sugar and Kshs. 3,000 per tonne of molasses produced.
  • Lessees are mandated to invest in cane development, modernize mills, and diversify into cogeneration and bioethanol production, with all investments reverting to the government at the end of the lease.

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