The government has launched a fresh effort to revive the long-idle Kwale International Sugar Company Limited (KISCOL), raising hopes for thousands of farmers and workers whose livelihoods have been tied to the factory for years.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe announced the plan during a visit to the company’s factory, irrigation dams, plantations and out-grower farms in Kwale County. At the centre of the strategy is a high-level committee tasked with addressing the legal, financial and operational hurdles that have kept the mill shut.
For many cane growers, the prolonged closure has meant unpaid debts, shrinking incomes and uncertainty over the future of sugar farming along Kenya’s Coast.
“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, which will be led by the Kenya Sugar Board, will bring together representatives from the national and county governments, investors, farmers, security agencies and local leaders. Its mandate is to develop a practical roadmap for reopening the factory and restoring confidence in the sector.
Kagwe described KISCOL as one of Kenya’s most significant private sugar investments. He said the factory’s milling equipment, irrigated estate and extensive network of outgrowers could once again become a major source of employment and economic activity if operations resume.
Beyond sugar production, the plant is expected to support related industries, including ethanol manufacturing, molasses processing and electricity generation from bagasse. Those activities, the CS said, could create more business opportunities across Kwale and neighbouring counties.
According to the Kenya Sugar Board, the sugar industry supports more than six million Kenyans through farming, transport, processing and trade. It also remains an important contributor to the country’s agricultural economy.
Kenya, however, continues to produce less sugar than it consumes. Domestic production typically falls short of annual demand, forcing the country to import sugar to bridge the gap. Government officials believe reopening dormant mills such as KISCOL could help reduce that reliance while giving local farmers a more stable market.
Still, Kagwe acknowledged that reopening the factory will require more than financial support.
He pointed to land disputes, cane shortages, delayed payments to farmers, vandalism of infrastructure and security concerns as some of the challenges that must be resolved before normal operations can resume.
Among the immediate interventions announced is the planned payment of Sh66 million owed to farmers. The government hopes clearing the arrears will encourage growers to return to sugarcane production after years of frustration.
Kagwe also appealed to residents to safeguard irrigation systems and sugarcane farms, warning that vandalism and deliberate destruction of crops only deepen the sector’s difficulties.
Another major issue is land ownership. The Cabinet Secretary called on the Kwale County Government to accelerate the resettlement of about 15,000 squatters occupying nearly 7,000 acres of land linked to the factory, saying the matter remains one of the biggest obstacles to restoring full operations.
Drawing on recent reforms in Western Kenya’s sugar sector, Kagwe argued that cooperation between government, investors and local communities had shown that struggling factories can recover.
“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 revival committee is expected to prepare a framework outlining the responsibilities of each stakeholder while keeping farmers at the centre of the recovery process.
If the plan succeeds, officials believe KISCOL could once again become a key driver of economic growth in the Coast region, creating jobs, attracting investment and strengthening Kenya’s efforts to increase domestic sugar production.
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