In a bold step toward reviving Kenya’s ailing sugar sector, Kibos Sugar and Allied Industries Limited has officially assumed management of Chemelil Sugar Company, following the conclusion of a competitive leasing process overseen by Agriculture Cabinet Secretary Sen. Mutahi Kagwe.
The transition, announced yesterday in Nairobi, marks a significant turning point for Chemelil, once a pillar of Western Kenya’s agrarian economy but long plagued by debt, aging infrastructure, and stalled production. Kibos Sugar Director Mr. Jassi Chatthe took formal charge of the factory this morning, addressing workers and hundreds of hopeful sugarcane farmers who gathered to witness the handover.
“We are not just here to manage; we are here to transform,” said Mr. Chatthe, vowing to modernize operations, ensure prompt payment to farmers, and restore lost confidence in the sugar value chain. “The future of Chemelil is bright. We bring with us capital, technical expertise, and a commitment to the communities that have waited too long for change.”
The takeover sparked jubilant scenes as factory employees danced and local leaders praised the government’s leasing model as a pragmatic path forward for the sugar belt.
Speaking during the handover, Sen. Kagwe said the move is part of the national government’s broader strategy to resuscitate state-owned sugar mills through private-public partnerships.
“The era of state mismanagement and delayed farmer payments must come to an end. Kibos Sugar has proven itself in the market and we expect them to replicate their success at Chemelil,” he said.
Founded in 1999, Kibos Sugar has grown into one of the largest privately-owned sugar producers in Kenya. With a daily crushing capacity of over 3,000 tonnes and a successful diversification into ethanol and co-generation, the company is often cited as a model of industrial efficiency.
In recent years, Kibos has also won praise for its outgrower support programs and environmental sustainability efforts, including biomass energy production. The company’s expansion into Chemelil is its most ambitious venture yet and could signal a shift toward more commercially viable sugar production in the region.
Farmers like Joshua Okoth from Muhoroni expressed cautious optimism. “We’ve seen factories come and go, but this feels different. If Kibos can pay us on time and maintain operations year-round, this will be a game-changer for our livelihoods.”
Kibos Sugar plans to conduct a full technical audit of Chemelil Sugar’s facilities in the coming weeks before rolling out a phased rehabilitation program. Sources close to the company indicated that investments could exceed KSh 2 billion over the next 18 months.
As Kenya grapples with declining sugar production and rising imports, the Chemelil revival could serve as a test case for the future of the entire sector.
