President William Ruto is advancing his plan to privatize sugar companies in Kenya, as confirmed by the Ministry of Agriculture’s recent advertisement inviting bids from private investors. In a notice published in local newspapers on Tuesday, the State Department for Agriculture announced the leasing of public sector-owned sugar companies.
Prospective investors are required to submit a Ksh10 million deposit as security during the bidding process.
Ruto officially signed the Privatisation Bill, 2023, into law in September. In the month of October, he then disclosed his intentions to privatize sugar companies in October 2023.
According to the president, this move would enhance their profitability and rejuvenate the sector. He further assured that the state would ensure responsible management of the factories to protect the interests of farmers.
Apart from Mumias Sugar, the struggling millers in Kenya include Chemelil, South Nyanza, Nzoia, Muhoroni, and Miwani sugar factories.
In the recent advertisement, interested parties were instructed to obtain detailed documents at Kilimo House after paying a non-refundable fee of Ksh5,000.
The notice also indicated that tenders would be opened immediately thereafter in the presence of candidates or their designated representatives at Kilimo House, as stated by the Agriculture Principal Secretary.
