Transparency Triumph: Ombudsman Forces Govt to Unveil Sugar Mills Lease Secrets
The Office of the Ombudsman has issued a binding order compelling the Principal Secretary for Agriculture to disclose all documents related to the 30-year leasing of four state-owned sugar companies Muhoroni, Nzoia, Chemelil, and Sony Sugar within 21 days, with threats of criminal prosecution for non-compliance.
This directive stems from a citizen’s unresolved information request under the Access to Information Act of 2016, highlighting growing demands for accountability in public deals .
A notice dated August 8, 2025, which allows redacted versions if sensitive details exist, but insists on releasing award letters, lease agreements, and selection criteria.
“The Commission has ordered the Principal Secretary of the State Department for Agriculture to release information on the leasing of sugar companies within twenty-one days. Failure to do so will result in a recommendation for criminal prosecution against the Principal Secretary under Section 28 of the Access to Information Act of 2016,” read the notice.
Sugar Sector’s Long Struggle
Kenya’s sugar industry has faced chronic losses, inefficiencies, and farmer payment delays, prompting the government to pursue private partnerships after Parliament rejected full privatization in favor of leasing.
Finalized on May 10, 2025, the deals awarded Nzoia to West Kenya Sugar Company, Chemelil to Kibos Sugar & Allied Industries, Sony to Busia Sugar Industries, and Muhoroni to West Valley Sugar Company, aiming to revive production for over 60,000 farmers.
Lessees commit to annual land rents of Sh40,000–45,000 per hectare, concession fees of Sh4,000 per tonne of sugar and Sh3,000 per tonne of molasses, plus a goodwill payment, while government retains ownership and mandates retaining 80% of workers.
Citizen Push Meets Official Silence
Mr. AO’s request specifically ssought on the letter of award issued to private entities leasing Muhoroni, Nzoia, Chemelil, and Sony Sugar Company Limited, as well as the criteria used in the allocation and the full lease agreements between the government and the respective lessees of the four sugar companies.
Citizen Mr. AO filed for details on July 29, 2025, but the Agriculture ministry ignored the statutory seven-day response deadline, leading to the Ombudsman’s intervention on September 5 .
“The information requested by Mr. AO in his letter dated July 29, 2025, may contain elements that are subject to limitations under Section 6(1) of the Access to Information Act of 2016. Therefore, a redacted version of the requested information/documents will suffice,” said the Ombudsman
Earlier, High Court rulings in February 2025 cleared the leasing path after public participation challenges, yet transparency gaps persisted amid opposition claims of favoritism toward cartels .
President William Ruto defended the model as a “win-win,” promising machinery upgrades, monthly farmer payments akin to tea sectors, and deal cancellations for poor performance .
This order reinforces the Access to Information Act’s Sections 22, 23, and 28, potentially setting precedents for scrutiny in other privatized sectors like recent court-mandated Sh24 billion payouts to sugar investors .
The Ombudsman issued a binding order requiring the PS to provide access to the letter of award and lease agreements for Muhoroni, Nzoia, Chemelil, and Sony Sugar Company Limited, including the considerations used in awarding the leases.
Ensure full compliance within 21 days of the directive’s date.
Face criminal prosecution under Section 28 of the Access to Information Act if the order is ignored.
Critics argue the leases fail to curb cheap sugar imports, risking jobs and market distortion, while supporters eye boosted output and arrears clearance for farmers and workers
As the 21-day clock ticks, disclosure could either quell suspicions or expose flaws, shaping trust in Kenya’s economic reforms.