Siaya County signs 10-year lease to upgrade and operate Usonga Siriwo Rice Mill

The contract includes a performance review after three years, with the investor’s continued tenure dependent on compliance with set deliverables. To date, Siaya County has invested KSh 71 million in the mill’s infrastructure.

Under the lease terms, Nile Logistics Ltd is required to upgrade the milling machinery, undertake routine maintenance, guarantee fair pricing for farmers, establish secure market linkages, and ensure that at least 60% of the mill’s workforce is drawn from the local community.

To support the partnership, the Department of Agriculture will expand farmer training through the Usonga Rice Producers Cooperative Society. The county targets increasing land under rice production to 11,200 acres - leveraging the Lower Nzoia Irrigation Project - and raising yields from the current 2,500 kg to 4,000 kg per acre.

Siaya also plans to shift from one to two cropping seasons per year to maintain consistent supply for the mill, which has a processing capacity of 2.5 metric tons per hour.

In return, Nile Logistics Ltd will pay an annual lease fee to the county as stipulated in the agreement.

Governor James Orengo noted that with full utilization of available irrigation potential, Siaya could supply more than 35% of Kenya’s total rice demand, positioning the county as a key player in national food production.

The signing had initially been planned for the Siaya Trade and Investment Conference in October, which ended early. Its completion today reaffirms the county’s commitment to public-private partnerships aimed at expanding agro-industrial development and improving livelihoods.

The agreement is expected to revitalize the Siriwo Rice Mill, create jobs, and strengthen Siaya’s emerging role as a regional hub for rice processing and agricultural enterprise.