Governor Anyang Nyongo Statement On Leasing Of Sugar Factories In Kisumu County

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 brother, the late Jakoyo Midiwo, we filed a petition (Anyang' Nyong'o & 4 others V Privatization Commission & 2 others [2016] eKLR) to stop the imminent privatization of the five sugar mills in Western Kenya—and the court agreed with us. Then, as now, I do not condone the abuse of due process to grab public assets cheaply for the benefit of private monopolies and fiefdoms.

Today, as the County Government of Kisumu, we are dismayed to learn that the planned leasing of Chemelil Sugar Factory and Muhoroni Sugar Factory has been fast-tracked and finalized. This has happened with no proper stakeholder involvement and under a cloak of secrecy.

According to recent developments:

Chemelil Sugar Factory is to be leased to Kibos Sugar & Allied Industries Ltd(a company only 16 years old) for a period of 30 years. Muhoroni Sugar Company is to be leased to the West Valley Sugar Company (barely 5 years old) for 30 years.

Further, we are gravely concerned that the prime nucleus land of Miwani Sugar Mills is being transferred through opaque arrangements to Crossley Holdings Limited, despite ongoing court litigation (Miwani Sugar Mills Limited & Ano VS Crossley Holdings Limited, Nagendra Saxena & others). This amounts to criminal activity, circumventing local demands and denying residents a say in the future of their land after the factory's receivership.

Just last year, the High Court stopped International Tender Notice No. MOALD/SDA/IT001/2023-24, leading to a fresh notice in March this year, which has now been rushed to completion. This is nothing short of daylight robbery, an economic coup against over 60,000 farmers, involving 15,000 hectares of farmland, essential public offices, churches, mosques, homes, and renowned learning institutions such as Chemelil Factory Primary, Muhoroni Primary, and Miwani Estate Primary School, alongside several ECD centres.

We firmly oppose this opaque lease plan, which ignores the social fabric, existing infrastructure, and public interests in sugar belt sub-counties—Muhoroni, Kisumu East, and Nyando. The plan threatens to dismantle community livelihoods and invites monopolistic exploitation.

Key Pertinent Issues

1. On 28th February 2025, the Ministry of Agriculture floated International Tender Notices No. MOALD/SDA/IT/002/2024/2025 and No. MOALD/SDA/IT/004/2024/2025 for leasing Chemelil and Muhoroni Sugar Factories.

2. Despite initial commitments, there has been no public participation involving stakeholders such as farmers, the County Government, workers, or leaders.

3. The tendering process is reportedly in its final stages, including signed documents, without stakeholder involvement.

4. There is no evidence of value for money, contrary to Article 227 of the Constitution and the Public Procurement and Asset Disposal Act, 2015.

5. The long-standing Miwani land dispute was allegedly resolved out of court through a suspicious consent order between the receiver manager and Crossley Ltd.

6. PS Dr. Paul Rono allegedly instructed the National Land Commission to deregister title deeds for Miwani and Muhoroni lands and issue fresh titles to Kibos and West Valley without County Government consultation, risking ethnic tensions, especially near the Nandi-Miwani and Kipsigis-Kuguta borders.

7. Farmers and workers fear that leasing the mills to Kibos and West Valley will create dangerous monopolies.

8. The Leasing Transition Committee (LTC), responsible for assets, liabilities, workforce transition, and dispute resolution, lacks representation from County Governments, farmer organizations, or workers' unions.

Our Legal and Moral Position:

The 30-year leases will disenfranchise local farmers, robbing them of land and economic autonomy. This is unconstitutional and violates Articles 10, 11, 60, and 62, which guarantee public participation, transparency, and land protection.

Agriculture is a devolved function under Schedule 4 of the Constitution. Any national action excluding County input is unconstitutional.

Lands used by public factories (Chemelil: 2,779 hectares, Muhoroni: 1,600 hectares, Miwani: 11,000 hectares) are public land, administered by the National Land Commission but held in trust by County Governments.

The leasing process undermines the Constitution, disregards legal and economic rationale, and is socially destructive.

Our Demands and Way Forward:

1. We demand an immediate halt to the leasing process.

2. Legal action under a certificate of urgency must be instituted to suspend the leases until all legal breaches are addressed. The County may support farmers' groups in this effort.

3. We must broaden civil society participation, conduct public rallies, and ensure a transparent, inclusive process aligned with past public memoranda submitted to the Privatization Commission.

4. The County Assembly must lead a people-powered resistance against this attack on devolved authority and local livelihoods.

5. We urge the residents of Kisumu County to stand firm. We must reject this scheme that ignores the voices of those most affected farmers, workers, and communities.

This ill-conceived leasing agenda is not just illegal; it is a threat to land rights, community cohesion, and the future of the sugar industry in Kisumu.

Aluta continua.

H.E PROF PETER ANYANG' NYONG'O, EGH
GOVERNOR, KISUMU COUNTY
07 May, 2025.