The government has unveiled a comprehensive plan to revive the Kwale International Sugar Company Limited (KISCOL) in a move aimed at restoring sugar production at the Coast, creating jobs and improving the livelihoods of thousands of farmers.
Agriculture Cabinet Secretary Mutahi Kagwe announced the formation of a multi-stakeholder revival committee during an inspection tour of the factory, saying the initiative will address the operational, legal and social challenges that have stalled the mill’s operations for years.
Multi-agency committee to spearhead revival
The committee, which will 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 oversee the revival process.
Kagwe said the government’s priority is restoring economic opportunities for communities that depend 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,” he said.
He described KISCOL as one of Kenya’s most strategic sugar investments, citing its modern milling infrastructure, irrigated nucleus estate and extensive outgrower network as key assets capable of driving economic growth once full operations resume.
Government to clear farmer arrears
The Cabinet Secretary acknowledged that the company’s difficulties extend beyond financial constraints, pointing to land disputes, inadequate sugarcane supply, vandalism, delayed payments to farmers and insecurity as major obstacles.
Among the immediate interventions announced is the payment of KSh66 million in outstanding arrears owed to farmers, a move expected to restore confidence among growers and encourage increased cane production.
Kagwe said resolving farmers’ concerns is essential to rebuilding the sugar sector in the region.
Factory expected to boost regional economy
Once operating at full capacity, KISCOL is expected to process thousands of tonnes of sugarcane daily, supporting employment in farming, transport, irrigation, mechanical services, retail trade, input supply and manufacturing.
Beyond sugar production, the integrated complex has the capacity to expand value addition through ethanol production, molasses processing and electricity generation from bagasse, creating additional economic opportunities across Kwale and neighbouring counties.
The revival is also expected to reduce Kenya’s dependence on imported sugar by increasing domestic production and providing a reliable market for local farmers.
Call to protect infrastructure
Kagwe urged residents to safeguard sugarcane farms and irrigation infrastructure, warning that the destruction of cane fields and vandalism of pipelines undermines recovery efforts and prolongs farmers’ hardships.
He also appealed to the Kwale County Government to expedite the resettlement of about 15,000 squatters occupying nearly 7,000 acres of factory land, describing the land issue as one of the biggest impediments to restoring full-scale operations.
Drawing lessons from the successful turnaround of leased public sugar factories in western Kenya, Kagwe said collaboration between government, investors and local communities would be critical to reviving KISCOL.
“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.
Long-term recovery strategy
The Cabinet Secretary said the revival committee will develop a structured roadmap outlining the responsibilities of every stakeholder while ensuring farmers remain central to the recovery programme.
He added that government support would be guided by transparency, accountability and a technically sound strategy addressing irrigation, cane development, factory operations, financing and long-term sustainability.
KISCOL was shut down in 2018 after the Kenya Bureau of Standards (KEBS) seized its sugar over compliance concerns, a decision later declared unlawful by the High Court. The factory also suspended operations for 20 months from July 2022 because of operational and land lease disputes before resuming milling in February 2024. It resumed operations again in July 2026 following government intervention.
