Raila Sharply Reproaches Governor Nyong’o, Supports Ruto’s Sugar Mill Leasing Plan
Former Prime Minister Raila Odinga has backed the government’s intention to lease sugar companies to private investors.
This approach sharply contrasts with his ODM colleague, Kisumu Governor Anyang’ Nyong’o, who had previously opposed the leasing.
Raila, speaking on Thursday following a meeting with Agriculture Cabinet Secretary Mutahi Kagwe, stated that leasing sugar mills is vital for economic growth.
Raila and Kagwe had convened to explore how the agricultural sector could be restored. The discussions also included ongoing proposals to lease sugar companies to private investors.
Today, Cabinet Secretary for Agriculture and Livestock Development, Sen. Mutahi Kagwe, paid a courtesy call to Rt. Hon. Raila Odinga, Kenya’s Former Prime Minister.
— Philip Etale (@EtalePhilip) May 8, 2025
During the meeting, CS Kagwe briefed the Rt. Hon. Odinga on key developments and emerging opportunities in the… pic.twitter.com/ViL09RaD1Y
“Discussions also centered around the strategic leasing of sugar mills—an effort aimed at revitalizing the sugar industry and ensuring long-term sustainability for farmers and other stakeholders,” ODM Communication Strategist Philip Etale, said in a statement soon after the meeting.
“Raila expressed keen interest and support for these reforms, recognizing their potential to spur rural economic growth and food security.”
The Kenya Kwanza administration intends to lease four sugar firms – Nzoia, Chemelil, Muhoroni, and Sony Sugar – in a move that it claims will resuscitate the companies and boost the fortunes of stakeholders, particularly workers and farmers.
The decision, however, sparked a heated controversy, with certain officials, including Governor Nyong’o, rejecting it.
On Wednesday, Nyong’o described the decision as an economic coup against farmers and the people of Western Kenya. The governor criticized the leasing scheme, claiming it ignores essential players.
“We are dismayed to learn that the planned leasing of Chemelil Sugar Factory and Muhoroni Sugar Factory has been fast-tracked and finalized under a cloak of secrecy,” Nyong’o said.
President William Ruto began the proposal in May 2023, and it was later accepted by the Cabinet and Parliament.
The procedure has been overseen by the Ministry of Agriculture and Livestock Development, which has invited private investors to submit proposals.
Already, a lease for the Nzoia Sugar Factory has been confirmed.
It was leased to businessman Jaswant Rai for 30 years, a decision that the workforce and local sugar producers opposed.
Both workers and farmers oppose the lease, claiming it will disadvantage them.
Farmers and staff at Nzoia Sugar claim they were not involved in the plot.
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They want the government to pay their dues before the company’s management changes hands. Workers claim they are owed millions in salary arrears for up to 28 months.
Nyong’o indicated that some of the companies involved in the leasing process were relatively new to the sugar industry, raising worries about their capabilities and objectives.
PRESS STATEMENT
— Gov. Anyang' Nyong'o (@AnyangNyongo) May 7, 2025
Widows of the Sugar Belt: The Leasing of the Sugar Mills in Kisumu County and the Sure Return to Abject Rural Poverty, Land Grab, and Ethnic Upheavals – Why the Lease Transition Must Be Halted
In 2016, as the Senator of Kisumu County, together with my fallen… pic.twitter.com/eoqty792IN
This is not the first time Raila and his ODM lieutenants have publicly differed since the party reached an agreement with President Ruto to form a broad-based administration.
Previously, Nyong’o and Siaya Governor James Orengo could not agree on devolution concerns until Raila cleared the air and backed the leaders who were already under criticism from Ruto’s allies.
Raila Sharply Reproaches Governor Nyong’o, Supports Ruto’s Sugar Mill Leasing Plan
