Ombudsman sets 21-day deadline for sugar mill records

News · Ann Nyambura · December 9, 2025
Ombudsman sets 21-day deadline for sugar mill records
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe/HANDOUT
In Summary

The order comes shortly after Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe told Parliament that all assets leased under 30-year concessions will revert to government ownership once the contracts end. He defended the leases, finalized in May, as a strategic approach to attract private investment while safeguarding public property.

The Office of the Ombudsman has ordered the Ministry of Agriculture to hand over comprehensive records on the leasing of four state-run sugar factories, setting a 21-day deadline and warning that non-compliance could trigger criminal proceedings.

In a statement released on Monday, December 8, 2025, the Commission instructed Principal Secretary Kiprono Ronoh to make available all documents linked to Muhoroni, Nzoia, Chemelil, and Sony Sugar mills.

The materials include lease agreements, award letters, and the criteria used to select the private firms now operating the factories.

“Failure to do so will result in a recommendation for criminal prosecution under Section 28 of the Act,” the notice said.

The action follows a complaint from a citizen identified as AO, who had submitted a formal access-to-information request on July 29, 2025, but did not receive any response. The Ombudsman clarified that even if certain details are sensitive, the ministry must provide redacted copies.

“The information requested may contain elements subject to limitations under Section 6(1). Therefore, a redacted version will suffice,” the Commission added.

Ronoh did not reply within the seven-day window required by law after receiving the official request on September 5, 2025. Acting under Sections 22 and 23 of the Access to Information Act, the Ombudsman issued a binding order compelling him to comply within 21 days or face criminal liability.

The order comes shortly after Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe told Parliament that all assets leased under 30-year concessions will revert to government ownership once the contracts end. He defended the leases, finalized in May, as a strategic approach to attract private investment while safeguarding public property.

Under the agreements, Sony was leased to Busia Sugar Industry Ltd, Nzoia to West Kenya Sugar Company Ltd, Chemelil to Kibos Sugar & Allied Industries Ltd, and Muhoroni to West Valley Sugar Company Ltd.

“These leases are not handovers. They are performance-driven concessions designed to revive factories, grow cane, protect farmers and modernise production,” Kagwe explained to lawmakers.

The lease terms require investors to pay annual rent of Sh40,000 per hectare for Chemelil, Muhoroni, and Sony, and Sh45,000 per hectare for Nzoia. In addition, companies must pay a concession fee of Sh4,000 per tonne of sugar and Sh3,000 per tonne of molasses, along with a one-time goodwill payment equal to one year’s lease rent.

Kagwe emphasized that the leases were treated as all-inclusive packages, covering land, buildings, machinery, and plantations.
“We leased the mills as composite assets. The nucleus estate land and the standing cane were not valued separately, because they are part of the entire operating system,” he said.

Investors are also required to explore alternative operations such as cogeneration, bioethanol production, and other value-added ventures, while rehabilitating factories, updating technology, and improving milling efficiency.
“These are not optional commitments,” Kagwe stressed.

He also confirmed that no company controls more than half of the national sugar market, and highlighted that regulators are empowered under the Sugar Act, 2024, and the Competition Act to prevent market domination.

According to Kagwe, revenues from the leases will directly benefit farmers and local communities, funding bonuses, cane development, infrastructure, and support for out-growers.
“The proceeds will go into farmers’ bonuses, cane development, infrastructure, and strengthening out-grower systems,” he said.

The Ombudsman reiterated that the PS must comply with the order within 21 days or face criminal action under Section 28 of the Access to Information Act, 2016. The Commission underscored that all requested information, including letters of award and lease agreements, must be released even if parts require redaction.

“The Principal Secretary, State Department for Agriculture, facilitates access to information and records relating to the request for information made by Mr AO contained in a letter dated July 29, 2025, in strict compliance with the law,” the notice concluded.

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