It’s now official — Nzoia Sugar Factory will be leased to a private investor. The factory’s board chairman, Alfred Khang’ati, has confirmed that businessman Jaswant Rai won the 30-year lease and is expected to take over next week.

Khang’ati says farmers are set to receive more than Ksh.200 million in pending payments before the end of this financial year, and workers will remain under the new management for the next year to allow a smooth transition. 

However, the process faces a legal challenge, with a court case already filed. 

"In the coming week or the week after, they will no longer belong to the government. Some private enterprises will have taken over. The aspect of privatisation or leasing is for 30 years. A lease agreement has already been signed between the government and the lessee," Bonface Otsiula, Board Member at Nzoia Sugar Factory, stated.

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"We are looking at the wider public interest, which involves the welfare of the farmers and staff who have not earned salary from 2022 to date and they have persevered," Khang’ati added.