Deal signed for new Sh6 billion sugar factory in Kericho

The Kericho County government has signed a memorandum of understanding (MoU) with an Indian company for the construction a Sh6 billion sugar factory.

Speaking at the signing, Governor Paul Chepkwony said the new mill to be built in Soliat ward, Soin/Sigowet constituency, would have a capacity equal to that of Nzoia and Chemelil sugar factories.

Once complete, it will produce at least 172,500 metric tonnes of sugar, 15 million litres of ethanol/Extra Neutral Alcohol (ENA) and 260 megawatts of renewable energy.

"The company intends to sell the bulk of its sugar and ethanol/Extra Neutral Alcohol within Kenya and to supply the excess power to the Kenya Power Company to be fed into the national power grid," said Asiatic Oxygen Limited chairman Ajay Konoria whose factory is locally registered as the Kericho Sugar and Refinery Company.

He said the company would seek to improve the livelihoods of the local population by establishing small-holder and out-grower support schemes.

Mr Chepkwony said the policy objective of his administration was to attract large-scale foreign investment in the agricultural sector.

"The sugar factory will offer employment to at least 600 people from Soin/Sigowet constituency alone," said the governor.

Leading producer

Area MP Justice Kemei disclosed that they decided to enter the deal with the Indian company because India was a low-cost sugar production country second to Brazil, which is the leading sugar producer in the world.

"The Indian company is also well equipped with advanced technology in the production of sugarcane which is high in sucrose and has disease-resistant qualities, which are ideal for the semi-arid Soin/Sigowet constituency," said Mr Kemei.