CS Kagwe unveils plan to revive Coastal sugarcane sector, restore Kwale Sugar Company

Agriculture Cabinet Secretary (CS) Mutahi Kagwe has announced the formation of a stakeholder revival committee that will spearhead the factory's revamp after years of operational challenges that have left farmers without a reliable market.

Speaking during an inspection tour of the factory on Thursday, CS Kagwe said the Government's priority is rebuilding the livelihoods of thousands of families who depend directly and indirectly on the sugar value chain.

"This visit is not about politics. It is about the lives and livelihoods of the people of Kwale. A factory is only important because of the people whose lives it transforms," Kagwe said.

The committee, to be led by the Kenya Sugar Board, will bring together the National Government, Kwale County Government, investors, farmers, security agencies and local leaders to resolve the legal, operational and social challenges that have kept the mill closed.

The Cabinet Secretary said KISCOL remains one of the country's most strategic sugar investments, possessing modern milling infrastructure, an extensive irrigated nucleus estate and a large outgrower network capable of transforming the economy of Kenya's Coast region once operations resume.

CS Kagwe acknowledged that KISCOL's challenges extend beyond financing, citing land disputes, cane shortages, vandalism, delayed farmer payments and insecurity as key issues requiring coordinated intervention.

Among the immediate measures announced is the planned clearance of Ksh.66 million in outstanding farmer arrears, a move aimed at restoring confidence among cane growers and encouraging them to resume production.

At full capacity, the integrated sugar complex has the potential to mill thousands of tonnes of cane every day, supporting livelihoods across farming, transport, mechanical services, irrigation, input supply, retail trade and manufacturing. 

Beyond producing sugar, the factory has the capacity to stimulate value addition through molasses, ethanol production, electricity co-generation from bagasse and other downstream industries, significantly expanding economic activity in Kwale and neighbouring counties.

The revival is also expected to reduce Kenya's dependence on imported sugar by increasing domestic production while creating a stable market for local cane farmers.

He also urged residents to protect sugarcane farms and irrigation infrastructure, warning that the burning of cane fields and vandalism of pipelines only prolong the suffering of farmers and delay economic recovery.

CS Kagwe further appealed to the Kwale County Government to fast-track the resettlement of approximately 15,000 squatters occupying nearly 7,000 acres of factory land, describing the issue as one of the biggest obstacles to restoring full-scale operations.

Drawing lessons from the successful leasing and turnaround of public sugar factories in Western Kenya, Kagwe said similar collaboration between Government, investors and local communities could restore KISCOL into a profitable enterprise that benefits everyone.

"We have seen what cooperation can achieve in other sugar-growing regions. When Government, investors and communities work together, factories reopen, production increases and farmers begin earning again. Kwale can achieve the same success," he said.

The Cabinet Secretary said the revival committee will develop a clear framework defining the responsibilities of each stakeholder while ensuring farmers remain at the centre of every decision.

He maintained that Government support would be anchored on transparency, accountability and a technically sound revival plan that addresses irrigation, cane development, factory operations, financing and long-term sustainability.

KISCOL was shut down in 2018 by the Kenya Bureau of Standards (KEBS), which seized its sugar consignments over compliance and fitness claims, which the High Court later declared illegal and ordered compensation.

The factory halted operations for 20 months starting in July 2022 due to operational and leased-land battles with the state, before resuming milling in February 2024. It resumed operation in July 2026 after government intervention.