Premium
State moves to revive Kwale sugar miller
The Kwale International Sugar Company Limited in Kwale County.
What you need to know:
- The project is one of Kenya’s largest integrated agricultural investments, with an estimated value of Sh52 billion.
- At full production, the project has the potential to significantly reduce Kenya’s dependence on imported sugar.
The government has stepped up efforts to revive Kwale International Sugar Company Ltd, with Agriculture Cabinet Secretary Mutahi Kagwe declaring the project a national economic priority.
Mr Kagwe admitted that the challenges extend beyond financing. He identified land disputes, inadequate cane supply, vandalism, delayed payment to farmers and insecurity as some of the obstacles that have kept the miller idle.
During a tour of the project in Kwale County on Wednesday, the minister said the government is committed to addressing the issues through a coordinated approach involving national and county administrations, investors, locals and banks.
“The concerns require all stakeholders to work together,” Mr Kagwe said.
He added that the government would honour its obligations and uphold court orders relating to the project.
“I have the full support of President William Ruto to resolve every issue affecting this investment. Kenya must demonstrate that it honours its commitments,” he said.
The Cabinet Secretary said the President directed him to recommend practical measures required to restore operations.
“President Ruto instructed me to determine exactly what is needed to revive this project,” Mr Kagwe said.
The CS announced plans to establish a special committee that would work directly with the management of the company, local leaders and community representatives to speed up its revival. He pledged to oversee the process until the factory resumes operations.
The Kwale International Sugar Company Limited plant in Ramisi, Kwale County.
“It is not just about the project. It is about the lives of people. Thousands of farmers, workers, transporters and businesses depend on this investment. It is a jewel and the only one in Kwale. We must nurture and preserve it because of what it means for the people and for the country’s economy,” he said.
The CS heaped praise on Pabari Group and its Mauritian partner Omnicane Ltd for remaining committed to the project despite legal disputes and operational setbacks.
He said restoring confidence in foreign investors begins with supporting businesses that have demonstrated resilience. He challenged the surrounding community to work with the investors, particularly on infrastructure that will benefit the project.
“Why should we have a 10 million cubic metre reservoir when the community cannot agree to allow construction of a six-kilometre water pipeline? Everyone must play their role if we want development,” the minister said.
The project is one of Kenya’s largest integrated agricultural investments, with an estimated value of Sh52 billion.
It includes 5,500 hectares of land under cane, a modern mill capable of crushing 3,300 tonnes of cane a day with an expansion potential to 5,000 tonnes, an 18MW bagasse-fired plant and one of Africa’s most advanced sub-surface drip irrigation systems.
At full production, the project has the potential to significantly reduce Kenya’s dependence on imported sugar while creating thousands of jobs.
It has introduced improved cane varieties suited to coastal conditions, reducing the crop’s maturity period to about 12 months compared to the traditional 18-month cycle.
The renewed commitment by the government follows last year’s High Court judgment that awarded the project approximately Sh24 billion in compensation after finding that the state breached its obligations under the 2007 lease deal by failing to provide peaceful possession of the leased land.
Local leaders and farmers welcomed Mr Kagwe’s intervention, saying the project would unlock the region’s enormous potential.
Follow our WhatsApp channel for breaking news updates and more stories like this.
