Nzoia Sugar Company, a state-owned enterprise in Bungoma County, has been under government management since 1978. However, it has faced significant challenges, including financial difficulties and outdated infrastructure. These issues have hindered its operations and contributed to its declining performance over the years.
In May 2025, the government leased Nzoia to West Sugar Company, owned by Jaswant Rai, for 30 years to revive the struggling sugar industry. This decision followed a 2023 Cabinet approval to lease state-owned sugar mills, including Nzoia, Chemelil, Sony, and Muhoroni, to private investors. The move aimed to improve efficiency and profitability but has sparked controversy over its execution.
Public concerns have centered on the lack of transparency and public participation, which are required under Article 10 of the 2010 Kenyan Constitution. Western Kenya leaders, such as Eugene Wamalwa, argue that the privatization process ignored stakeholder engagement. They worry about the legality of the lease and its potential economic harm to farmers and workers who depend on Nzoia for their livelihoods.
A major legal issue is the violation of public participation requirements. The 2010 Constitution emphasizes inclusive decision making for public entities like Nzoia, as they involve public resources. On February 15, 2024, the High Court temporarily halted the privatization of Nzoia and other sugar mills, citing insufficient public consultation. Despite this, the government moved forward with the lease, violating another court order on April 23, 2025, to stop the process and reinforce the need for transparent stakeholder involvement.
This disregard for court orders raises serious questions. Is leasing Nzoia the right move, even if the government has struggled to manage it? Western leaders, including Trans Nzoia Governor George Natembeya, argue that the opaque process undermines fairness. They are considering further legal action to challenge the lease.
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