The national government will surrender its shares in Mumias and Nzoia sugar companies to counties where they are located.
Deputy President William Ruto said the State will 'donate' 20 per cent stake in the two millers to Kakamega and Bungoma counties, respectively.
He said the national government will also stop the leasing arrangement of five State-owned sugar factories and let county governments where they are located take over.
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“We shall donate the shares and the counties will be free to look for investors of their choice to help turn around the sugar mills. No investor will be brought in by the national government,” said Ruto, who spoke during the burial of Matungu MP Justus Murunga on Saturday.
The DP was reacting to demands by Bungoma Senator Moses Wetang’ula who urged the government to stop leasing of the factories, which include Nzoia Sugar Company, and let counties take control of their revival.
“The Jubilee government has one fiscal year left. Please set aside funds for revival of both Mumias and Nzoia sugar companies so that our people can be empowered economically. We don’t want the government to lease our factories to strange investors, which amounts to selling the mills,” Wetang’ula said.
A section of leaders and sugarcane farmers from Western Kenya are opposed to leasing of Nzoia, Chemelil, Muhoroni, Miwani and South Nyanza sugar companies to foreign investors.
"We want the government to relinquish its shares in Mumias and Nzoia sugar companies to allow farmers and the county to own them,” said Wetang’ula.
Ruto said the government had injected billions of shillings into the revival of Mumias Sugar Company, but lamented that little was achieved.
