Kenya’s Sugar Billionaires: Meet Investors Set to Take Over Nzoia, 3 Other State-Owned Factories
- President William Ruto's administration planned to lease four State-owned sugar mills to private investors for 30 years
- Agriculture Cabinet Secretary (CS) Mutahi Kagwe directed the four sugar mills' management to hand over to the respective lessees on May 10, 2025
- The companies, Nzoia Sugar, Chemilil Sugar, Muhoroni, and Sony Sugar, have been leased to tycoon sugar investors, including Jaswant Rai and Ali Twaib
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Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
The government has leased four state-owned sugar factories through a divestiture agreement.
Source: Twitter
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In 2023, President William Ruto assented to the Privatisation Bill that sought to lease non-performing state corporations.
Why Kenyan govt leases sugar mills
The government listed 25 state corporations, including five sugar factories, to be leased under the new law.
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On Friday, May 9, Agriculture Cabinet Secretary Mutahi Kagwe directed four public sugar mills, including Nzoia Sugar, Chemilil Sugar, Muhoroni, and Sony Sugar, to hand over to the new lessees.
“Please arrange to hand over reports and documents to the lessees at the respective institutions’ mill headquarters,” said Mutahi.
The CS issued a special gazette notice dissolving all boards of management for the four mills. and
The sugar mills will be run by tycoon investors, including Jaswant Rai and Ali Twaib, for 30 years.
Below are sugar investors leasing the four public mills:
Who owns companies taking over Kenya's sugar mills?
1. Nzoia Sugar - Jaswant Rai
Nzoia Sugar Company has been placed under the management of Rai Group, which is managed by tycoon Jaswant Rai.
Source: Twitter
According to Citizen Digital, Rai injected KSh 5.6 billion into the ailing sugar factory after he obtained the lease.
Jaswant was born in India and later moved to Kenya in the 1970s, where he established his business empire under Rai Group—a conglomerate dealing in sugar, hospitality, real estate, edible oils, and soaps.
According to the 2020 Sugar Directorate report, the company controls 45% of the country’s sugar production through West Kenya Sugar, Kabras Sugar, Olepito, and Sukari Industries.
2. Chemelil Sugar Company - Chatthe family
Kibos Sugar & Allied Industries takes control of Chemelil Sugar Company.
The firm is owned by the Chatthe family, under Chatthe Group. The group's director is Jassi Chatthe.
Source: Twitter
The company has been in existence for 100 years, since the founders started cultivating sugarcane in the Kibos area in Kisumu (Miwani).
Other subsidiaries of the group are Kibos Paper and Packaging Limited, Kibos Distillers Limited. Kibos Sugar Refinery Limited and Kibos Fertiliser Limited.
3. Sony Sugar - Ali Ahmed Taib
Busia Sugar Industry Limited, founded by Ali Ahmed Taib, took over the management of Sony Sugar Company.
Source: UGC
Busia Sugar Industry Ltd was incorporated in 2011 and commenced operations in 2019.
The company has a milling capacity of 3,000 tonnes of cane per day.
4. Muhoroni Sugar Company - Bernard Soi
Muhoroni Sugar Company will be under the management of Bernard Soi, owner of West Valley Sugar Company.
Source: UGC
West Valley, which is owned by Kipchimchim Group, started in 2,000. The group's founder, late Samwel Ngetich Kipsoi, grew the company from a small retail kiosk at Kipchimchim Centre to Kipchimatt Supermarket.
The supermarket boasts 13 retail outlets across Kericho, Bomet, and Nandi counties. The group also manages ABSS Warehouses, a large tea storage facility in Mombasa.
Govt to pay sugar firm workers
Meanwhile, the government promised to settle workers' salaries and pensions during the transition.
CS Kagwe revealed that about KSh 1 billion was set aside to pay salaries for workers in the leased sugar mills.
He broke down the distribution of the money, saying that KSh 600 million will be used to settle staff arrears, and the remaining KSh 400 million goes to salaries.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
