Tycoon Jaswant Rai's company injects Ksh.5.6B into Nzoia Sugar after takeover

The takeover presided over by Nzoia Sugar board chair Alfred Khang'ati paved the way for Ksh.5.6 billion by West Kenya Sugar, which the company says is aimed at rehabilitating and modernising the factory to improve efficiency.

West Sugar thus committed to prioritising the welfare of factory workers and engaging the local community in reviving the factory while assuring stakeholders that all operations will be conducted within the law, amid past concerns over compliance in the sugar sector.

The company noted that it would spearhead extensive cane development programs in the region in a bid to improve raw material supply and ensure consistent milling operations, as part of the broader revitalisation plan.

Consequently, the company reassured farmers who have long been plagued by delayed dues that they would not be left behind, as they would also benefit from timely payments, a reform meant to restore trust and stimulate productivity across the value chain.

The takeover, which was announced this week by Mr Khang’ati, attracted protests from Nzoia Sugar employees who protested the leasing of the factory to Rai.

The protestors barricaded the road, lit bonfires as they carried placards, chanting anti-government slogans.

They walked five kilometres from the factory to the busy highway, demanding to be paid 28 months' salaries that have accrued to Ksh.2.3 billion.

The workers accused the government of going against labour laws and demanded job security before leasing the factory to Rai.

In announcing the takeover, Mr Khang’ati assured farmers that they would receive more than Ksh.200 million in pending payments before the end of this financial year, and would remain under the new management for the next year to allow a smooth transition.