Boniface Kanyamwaya, a journalist at TUKO.co.ke, has more than 10 years of financial, economic, business, market, and aviation expertise, providing insights into Kenya and global trends.

The government plans to privatise South Nyanza Sugar Company (Sony Sugar) as part of a wider plan to bring the miller back to profit.

The move, if implemented, will mean that the sugar miller will now be among the five sugar firms earmarked for privatisation.

However, local leaders as well as farmers have rejected the plans by the state to privatise the mill, saying they will lose jobs.

"The government will adopt a strategy similar to the Mumias Sugar Company recovery plan to modernise Sony Sugar and enhance its efficiency," said President William Ruto in a recent statement which was seen by

Apart from the loss of jobs, local cane farmers are opposed to the plans to allocate them 20% of the company's shares once it is privatised.

The farmers say they are ready to take over the company's management if the state waives its current debts and stops importing cheap sugar.

"It is wrong to privatise Sony Sugar as we will lose jobs. The government has also allowed cheap sugar into Kenya, which is killing local millers," Jared Opiyo, a cane farmer from Migoro, told on the phone on Wednesday, May 8.

The company has been grappling with a financial crisis in the last few years, including huge debts.

The financial difficulties have made it tough for the company to make a profit and list its shares on the Nairobi Securities Exchange.

The debts currently amount to millions of shillings. The accumulated debts, especially those owed to cane farmers, have hampered operations as farmers continue to supply less cane.

If the company is privatised, it will follow in the footsteps of other millers like Nzoia, Chemelil, Muhoroni, and Miwani sugar companies.

The five public sugar factories will be placed in the hands of private companies that will run the mills for 20 years in fresh revival plans.

In other news, Sony Sugar reported a KSh 113 million pre-tax profit in the first four months of the financial year 2024/2025.

The profit marked significant earnings since 2010 after a decade of losses.

The firm's managing director, Martine Diwa, who took over in July 2023, said there is a need to continue building on the infrastructure and called upon the government to support its upgrade to achieve a crushing capacity of 3,000 tons per day.

The firm owes cane farmers KSh 146 million for cane that was delivered in October and November 2024. The delays in the settlement of money owed to cane farmers have been attributed to the KSh 300 million maintenance exercise conducted in December 2024.

Source: TUKO.co.ke