CONTROVERSY | The Miwani Sugar lease saga has morphed into a high-stakes battle touching on governance, land rights, and the survival of Kenya’s sugar industry—raising the critical question: who really controls the future of Miwani?
The controversial leasing of the state-owned Miwani Sugar Factory to a private firm has raised serious questions over its legality and accountability, with stakeholders demanding answers on who authorized the transaction since Miwani was not among the four government-owned mills officially gazetted for leasing. Miwani Sugar, which has been under receivership for over two decades due to debts amounting to more than Sh5 billion, was reportedly leased to Crosley Holdings Ltd, a firm linked to Kibos Sugar Company. Agriculture Principal Secretary (PS) Dr. Paul Rono earlier this year wrote to the factory’s receiver manager, instructing him that Crosley had taken over both the factory and its 10,000-acre nucleus estate.
However, in a dramatic twist, the Office of the Attorney General (AG) told the Employment and Labour Relations Court that neither the Ministry of Agriculture nor the AG’s office sanctioned or even knew of the deal. “The AG’s office and the parent Ministry of Agriculture did not participate, facilitate or approve the alleged leasing or takeover of Miwani Sugar Company by Crosley Holdings,” senior state counsel Sara Juma clarified in court.
Miwani Sugar company. PHOTO | COURTESY | TRBN |
10,000
ACRE MIWANI NUCLEUS ESTATE’S 99-YEAR
LEASE EXPIRED FOLLOWING THE 2010
CONSTITUTION
Miwani premises
Despite the denial, Kibos Sugar Company staff reportedly moved into the Miwani premises in August to service milling machines, signaling an imminent restart of operations. Crosley has since advertised vacancies, displacing former workers, prompting at least 93 ex-employees led by Jared Onyango Okelo to file a suit, arguing they risk losing their terminal benefits.
It was only through the AG’s response that it emerged the deal was a private commercial arrangement, not a government-backed transaction. This has deepened the puzzle: if the state was not involved, who authorized Crosley’s takeover of a parastatal asset?
The controversy is further complicated by a land dispute. The 10,000-acre Miwani nucleus estate’s 99-year lease expired following the 2010 Constitution, which placed community land rights at the center of land governance. Local Luo and Nandi communities, evicted by colonial authorities in 1910 to create the plantation, now demand restitution.
In meetings chaired by Nandi County Commissioner Caroline Nzwili, residents insisted that while they support the government setting aside land for economic projects such as Export Processing Zones (EPZs), the remainder must revert to the two communities. “We shall not accept any move by powerful people in government to grab the land and lease it to Kibos Sugar,” resident spokesperson Justus Chepkwony declared.
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Clashes
The dispute has turned violent at times. There have been clashes between locals and Crosley staff, including incidents where company vehicles were torched. Security has since been heightened, with the Rapid Deployment Unit (RDU) patrolling the land. Locals accuse the government of weaponizing colonial-era trespass laws, with dozens arrested and charged in Tamu court, Muhoroni.
Crosley Holdings, on its part, insists it acquired the nucleus land legally during a public auction in Kisumu on December 24, 2007, at the height of post-election violence. Still, questions linger about the authenticity of the transaction and whether due process was followed. Meanwhile, Agriculture PS Rono has also written to land offices in Kisumu, Bungoma, and Migori counties, directing them to issue new title deeds to firms that took over government mills—orders legal experts argue are irregular.
THE MIWANI SUGAR LEASE SAGA
Miwani Sugar Factory, under receivership for over 20 years, was reportedly leased to Crosley Holdings Ltd, linked to Kibos Sugar. The Attorney General and Ministry of Agriculture deny authorizing or knowing of the lease. Locals demand the 10,000-acre nucleus estate, whose lease expired in 2010, be returned to Luo and Nandi communities evicted in 1910. Ninety-three former workers have sued, fearing loss of terminal benefits after Crosley advertised new jobs. Government Stance: Four mills were officially leased under revival program—Chemelil, Muhoroni, Nzoia, SONY—but Miwani was not part of the gazetted list.
