Political Deals or Public Betrayal? How Kenya’s Sugar Industry Is Being Handed to Insiders

In 1922, the Devji Hichonda family purchased the Miwani Enterprise and established a
commercial mill that became the most successful milling plant in the region.
By 1946, Miwani was producing 20,000 tonnes of sugar from its 15,000 acres. It employed
4200 people are making it one of the biggest in the region.
In 2001, the company went under for good. The same individuals who saw Miwani sink are
the ones that set up Kibo Sugar.
Shockingly, the kibos sugar owners have now been handed over the management of
Chemelill Sugar Company. The community is now up in arms, fearing for the worst. Chemelil
sugar has three schools: factory primary school, Chemelil Sugar School and Chemelil Sugar
academy, all serving the community. The company also has chemelil health centre that
serves workers and community. These alongside other CSR now face serious threat of
closure with kibos sugar taking over management of chemelill Sugar.
Competition is a key component in business that enables efficiency. During the public
participation exercise, the stakeholders agreed and demanded that the leasing of the two
sugar companies, chemelil and muhoroni sugar companies be given to other investors
other than the neighbouring Kibos and West Valley Sugar companies. Shockingly, west valley
Hanner Muhoroni was as Kibos took over Chemelil.
The broad based government between Ruto and Raila is a factor seen in the leasing
process. Ruto has an interest in West Valley ownership, as Raila has an interest in Kibos.
The leasing term has been used by the two to get an opportunity to grab the vital public
entities. The two wahindi sons running kibos, Raju and Bire are both acting for Ruto and
Raila. Raju is Raila’s very close ally, while Bire has always been Ruto’s very close person.
Ruto even attended his son’s wedding. So these are business partners given another name
as the “lessee.”
When Kisumu governor first released the statement opposing the process, the ownership
of those questionable characters coming were the issues. It was shrouded in secrecy and
hurried without taking into consideration the public views of bringing in a new competitor to
both Kibos and West Valley.
The biggest heist in all these is the land question and land ownership of the nucleus
estates of the said sugar companies. Chemelil has 22,000 hectares, while muhoroni has
23,000 hectares. These parcels of land are the biggest targets. Just like they did with
Miwani land, these parcels will equally be grabbed and titles changed.
There is massive loss of jobs looming with new owners targeting to lay off more than half of
the existing employees. Some of these people have worked for the companies for more
than 20 years and coming to sack a workforce of more than 3000 employees by the millers
is a massive disaster to both the economies of the county and a disservice to the
surrounding population.
Busia sugar is taking over SONY sugar as butalii sugar takes over Nzoia sugar. The best
paying sugar company is transmara sugar that is not managed by wahindis. Curiously, it is
the only sugar company that the government kept off in these leasing procces. We all know
how wahindis misbehave with the workforce with longer working hours against very low
salary payments.
A government is supposed to server the people and create more jobs and not make people
loose their jobs. What the ruto administration has done is the create loss of jobs in
thousands with serious poverty looming around the entire weester region surar belt.