Muhoroni Sugar Company (MUSCO) in Kisumu County has resumed operations after years of inactivity, now milling up to 1,500 tonnes of sugar daily.
The revival follows a leasing partnership with West Valley Sugar Company, a private miller that took over operations in May.
The firm has injected approximately Sh500 million into rehabilitating the factory’s old machines and infrastructure to boost production.
Kenya Sugar Board (KSB) Chairman, Eng. Nicolas Gumbo, described the progress as a positive sign for the revival of Kenya’s struggling sugar sector.
“Muhoroni Sugar Company is among the factories currently performing well under the leasing arrangement,” he said.
Gumbo made the remarks during the Kenya Sugar Board leadership tour of the plant to assess the progress of the factory under the new management.
While acknowledging the existing challenges facing the leasing program, Gumbo dismissed fears of mass layoffs.
He confirmed that 90 percent of the existing workforce at the sugar factory will transition under the new management.
“The new management has agreed to retain 90 percent of the previous staff for smooth operations, since sugar milling requires highly experienced workers,” he assured.
He added that staff who have reached retirement age or opted for voluntary retirement will leave the company, but all affected workers will be compensated accordingly.
According to Gumbo, private investors entered the leasing program to make profits and must be allowed flexibility in workforce planning.
At the same time, he emphasized that the government remains committed to clearing outstanding debts owed to cane farmers and factory workers by state-owned mills.
The KSB team also inspected Nzoia, Sony and Chemelil sugar factories, which are similarly under a 30-year lease to private investors.
By Robert Ojwang
