Ombudsman orders Agriculture ministry to release sugar mill leasing records or face prosecution

The Office of the Ombudsman has given the Ministry of Agriculture three weeks to provide full records on the leasing of four state-owned sugar companies, warning that failure to comply could lead to criminal prosecution.

In a statement on Monday, the office wants Principal Secretary Kiprono Ronoh to release all documents related to the leasing of Muhoroni, Nzoia, Chemelil and Sony Sugar companies, including letters of award, lease agreements and the criteria used to select private operators.

“Failure to do so will result in a recommendation for criminal prosecution under Section 28 of the Act,” reads the statement.

The order followed a complaint by a citizen referred to as Mr AO, who submitted an access-to-information request on July 29, 2025, but received no response from the ministry. The Ombudsman noted that while some sections of the documents may be restricted, redacted copies must still be provided.

“The information requested may contain elements subject to limitations under Section 6(1). Therefore, a redacted version will suffice,” the Commission said.

The PS did not respond within the seven days required by law after receiving the formal request on September 5, 2025. Acting under Sections 22 and 23 of the Access to Information Act, the Ombudsman issued a binding order compelling Ronoh to grant access to the records within 21 days or face criminal sanctions.

The directives come shortly after Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe assured Parliament that all private investments in the four mills would revert to the government at the end of the 30-year concession period. He described the long-term leases, finalised in May, as a strategic move to attract private capital while protecting public ownership.

Under the agreements, South Nyanza (Sony) was leased to Busia Sugar Industry Ltd, Nzoia to West Kenya Sugar Company Ltd, Chemelil to Kibos Sugar & Allied Industries Ltd and Muhoroni to West Valley Sugar Company Ltd.

“These leases are not handovers. They are performance-driven concessions designed to revive factories, grow cane, protect farmers and modernise production,” Kagwe told MPs.

The lease terms require investors to pay annual rent of Sh40,000 per hectare for Chemelil, Muhoroni and Sony, and Sh45,000 per hectare for Nzoia. They must also pay a concession fee of Sh4,000 per tonne of sugar and Sh3,000 per tonne of molasses, plus a one-off goodwill payment equivalent to one year’s lease rent.

Kagwe stressed that the leasing package, covering land, buildings, plants and machinery, was treated as a comprehensive ecosystem.

“We leased the mills as composite assets. The nucleus estate land and the standing cane were not valued separately, because they are part of the entire operating system,” he said.

Operators are obligated to diversify into cogeneration, bioethanol and other value-added activities, rehabilitate factories, modernise technology and improve milling efficiency.

“These are not optional commitments,” Kagwe said.

He added that no single company controls more than 50 per cent of the national sugar market.

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The Cabinet Secretary further highlighted that the Sugar Act, 2024, and the Competition Act empower regulators to prevent market dominance. Revenues from the leases will directly support farmers and local communities.

“The proceeds will go into farmers’ bonuses, cane development, infrastructure, and strengthening out-grower systems,” he said.

The Ombudsman’s official notice reinforced these directives, noting that the PS must comply within 21 days, or the Commission will recommend criminal prosecution under Section 28 of the Access to Information Act, 2016.

The order emphasises that the requested information, letters of award and lease agreements, must be released even if some elements require redaction.

“The Principal Secretary, State Department for Agriculture, facilitates access to information and records relating to the request for information made by Mr AO contained in a letter dated July 29, 2025, in strict compliance with the law,” the Commission said.