Government Unveils Plan to Revive Kwale Sugar Factory
The Government has launched a new plan to revive the Kwale International Sugar Company Limited (KISCOL). The move aims to restore sugar production in the Coast region. It also seeks to improve the livelihoods of thousands of farmers.
During a visit to the factory on Thursday, Agriculture Cabinet Secretary Mutahi Kagwe announced the formation of a revival committee. The team will oversee the reopening of the factory. It will also guide its long-term recovery.
Revival Committee to Lead Recovery
The Kenya Sugar Board will head the committee. It will bring together the National Government, Kwale County Government, investors, farmers, security agencies and local leaders.
Together, the members will solve legal, operational and social challenges. These issues have delayed the factory’s return to full operations.
Speaking during the visit, Kagwe said the focus is on improving people’s lives.
“This visit is about restoring livelihoods, not politics. The true value of a factory lies in the lives it changes.”
Government Targets Farmer Support
Kagwe described KISCOL as one of Kenya’s key sugar investments. He said it has modern equipment, an irrigated nucleus estate and a strong outgrower network.
Once the factory reaches full capacity, it can boost the Coast region’s economy.
However, Kagwe said several problems still need attention. These include land disputes, sugarcane shortages, vandalism, delayed payments and insecurity.
To address one of those concerns, the Government plans to clear KSh66 million in outstanding payments owed to farmers. As a result, officials expect more growers to resume sugarcane farming.
Economic Benefits Expected
At full capacity, KISCOL can process thousands of tonnes of sugarcane every day. This will create jobs in transport, irrigation, manufacturing, retail, equipment maintenance and farm input supply.
In addition, the factory can produce molasses, ethanol and electricity from bagasse. These products will increase value addition and create more business opportunities.
Furthermore, Kagwe said higher local production will reduce Kenya’s dependence on imported sugar. It will also provide a reliable market for local farmers.
Call to Protect Farms and Infrastructure
Meanwhile, the CS urged residents to protect sugarcane farms and irrigation systems. He warned that burning cane fields and vandalising pipelines slow recovery efforts and reduce farmers’ earnings.
He also asked the Kwale County Government to speed up the resettlement of about 15,000 squatters living on nearly 7,000 acres of factory land.
According to Kagwe, resolving the land issue is vital. Without it, restoring full operations will remain difficult.
Lessons From Western Kenya
Kagwe pointed to the successful revival of sugar factories in Western Kenya. He said cooperation between the Government, investors and local communities helped those factories recover.
Similarly, he believes KISCOL can achieve the same results through strong partnerships.
The committee will prepare a clear roadmap for the recovery process. It will also assign responsibilities to every stakeholder. Most importantly, it will keep farmers at the centre of every decision.
Additionally, the Government will support the plan through transparency, accountability and sustainable investment. The strategy will cover irrigation, cane development, factory operations, financing and long-term growth.
Factory’s History
KISCOL closed in 2018 after the Kenya Bureau of Standards (KEBS) seized its sugar over compliance concerns. Later, the High Court ruled that the seizure was unlawful and ordered compensation.
The factory stopped operations again in July 2022 because of disputes over leased land. It resumed milling in February 2024.
Finally, following renewed Government intervention, KISCOL fully resumed operations in July 2026.
