The farmers cultivating an estimated 10,000 hectares of sugarcane have already been identified to supply the factory.
The factory plans to work with outgrowers located within a 15-kilometre radius to secure adequate cane supplies.
A group of investors plans to build a Sh1.46 billion sugar factory in Siaya County, adding to the growing list of greenfield investments in the agricultural sub-sector.
Disclosures showed that the investor behind Kipenzi Sugar Limited intend to establish the sugar factory in, Mur-Malanga sub-location in Alego Usonga Sub-county. The proposed mill will have an initial cane crushing capacity of 1,250 tonnes per day (TCD) that will be expandable to 2,500 TCD.