Agriculture CS Mutahi Kagwe during an inspection tour of the troubled Kwale International Sugar Company
Limited (KISCOL)factory, irrigation dams, plantations and outgrower areas./HANDOUT. The government has launched an ambitious plan to revive the troubled Kwale International Sugar Company Limited (KISCOL).
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The move is expected to restore thousands of jobs, revive sugarcane farming across the Coast region and inject billions of shillings into the local economy.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe announced the formation of a high-level multi-stakeholder revival committee to spearhead the reopening of the factory.
This is after years of operational challenges that left farmers without a reliable market and stalled one of Kenya's largest private sugar investments.
Speaking during an inspection tour of the factory, irrigation dams, plantations and outgrower areas, Kagwe said the government's priority was not politics but 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," the CS said.
The committee, to be led by the Kenya Sugar Board, will bring together the national government, the Kwale County Government, investors, farmers, security agencies and local leaders to resolve the legal, operational and social challenges that have kept the mill closed.
Kagwe said KISCOL remains one of the country's most strategic sugar investments. It has modern milling infrastructure, an extensive irrigated nucleus estate and a large outgrower network capable of transforming the economy of the Coast region once operations resume.
He said that, at full capacity, the integrated sugar complex has the potential to mill thousands of tonnes of cane every day, supporting tens of thousands of direct and indirect livelihoods in 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," Kagwe said.
According to the Kenya Sugar Board, the sugar industry supports the livelihoods of more than six million Kenyans, directly and indirectly, through farming, transport, processing, trade and related services.
The sector also contributes about 7.5 per cent of the agricultural Gross Domestic Product and around 1.5 per cent of Kenya's national GDP, making it one of the country's most important agricultural value chains.
However, Kenya continues to face a sugar production deficit. The country consumes about one million tonnes of sugar annually but produces only 700,000 to 800,000 tonnes in most years.
This forces it to import between 200,000 and 300,000 tonnes to bridge the gap.
Reviving dormant mills such as KISCOL is expected to help narrow this deficit and reduce reliance on imports.
The revival is also expected to provide a stable market for local cane farmers while boosting domestic sugar production.
Kagwe acknowledged that KISCOL's challenges extend beyond financing. He cited 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 Sh66 million in outstanding farmer arrears, a move aimed at restoring confidence among cane growers and encouraging them to resume production.
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.
The CS further appealed to the Kwale 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.
He added that the revival committee will develop a clear framework defining the responsibilities of each stakeholder while ensuring farmers remain at the centre of every decision.
Kagwe said government support would be anchored on transparency, accountability and a technically sound revival plan addressing irrigation, cane development, factory operations, financing and long-term sustainability.
"If successfully revived, KISCOL is expected to become a major economic anchor for the Coast region, revitalising agriculture, attracting fresh investment, creating employment opportunities for young people and strengthening Kenya's drive towards greater sugar self-sufficiency while stimulating growth across multiple sectors of the regional economy," he said.
