Get breaking business news on WhatsApp
West Kenya Sugar Company, part of Jaswant Rai’s Rai Group, plans to build a KSh4.2 billion (about US$32 million) sugar factory in Chesumei sub-county, Nandi County, able to crush 1,500 tonnes of cane a day, Tuko reported on October 31, 2026, following a Business Daily report. The West Kenya Sugar Nandi factory is at the environmental review stage: an environmental impact assessment report for a proposed sugar factory on land at Kamoiywo in Chesumei has been posted by the National Environment Management Authority (NEMA).
Key facts
- Investment: KSh4.2 billion.
- Location: Chesumei sub-county, Nandi County.
- Capacity: 1,500 tonnes of cane crushed per day.
- Status: environmental impact assessment and public review; not yet approved or under construction.
- Group capacity: once running, factories linked to the Rai family would crush more than 18,000 tonnes of cane a day.
A growing sugar group
The Rai family’s milling interests include West Kenya Sugar, which sells the Kabras brand, as well as the Olepito, Sukari and Naitiri factories. Together they account for roughly half of Kenya’s private milling capacity, according to the reports.
In May 2025, West Kenya Sugar took over Nzoia Sugar’s factory and 3,600-hectare estate under a 30-year lease, one of the government’s deals to lease state-owned mills to private operators. The terms require it to pay KSh4,000 for every tonne of sugar produced, make a one-off goodwill payment of KSh208.3 million and invest KSh5.76 billion in the mill. The Auditor-General reported in April that no lease contract or formal handover document had been presented for audit.
What it means for Nandi cane farmers
A new mill closer to farms would cut transport costs for cane growers in Nandi and neighbouring areas, who often deliver to factories farther west. More milling capacity can also mean more competition for cane, which tends to support prices paid to farmers, though cane prices in Kenya are set through the Sugar Board’s pricing committee. On the other hand, there are concerns in the sector about one group controlling a large share of capacity, which gives it strong bargaining power with farmers and over market prices.
Residents and farmers can comment on the NEMA environmental assessment during the public review period, which is the main chance to raise issues about water use, effluent, roads and land before a licence is issued.
How the approval process works
Large projects such as sugar mills need an Environmental Impact Assessment licence from NEMA before construction starts. The developer’s consultants prepare a study report, NEMA publishes a notice inviting comments, and the public usually has 30 days to send views in writing. NEMA can then approve the project with conditions, ask for more information or reject it. The factory will also need county approvals for building plans and land use, and a milling licence from the sugar regulator before it can operate.
The company has not given a construction timeline. For farmers, the key questions are how many acres of cane the mill will need to run at full capacity, how outgrower contracts will be structured, and how quickly cane will be paid for after delivery, since late payment has long been a complaint in the sugar belt.
Sugar sector context
Kenya’s sugar industry has been reshaped by the leasing of public mills, debates over imports and duty, and legal fights over taxes on industrial sugar. See our coverage of Premier Foods’ sugar duty remission case and the industrial sugar excise ruling.
FAQ
How much will the West Kenya Sugar Nandi factory cost?
About KSh4.2 billion.
Where is the new sugar factory in Nandi?
Chesumei sub-county, on land in the Kamoiywo area, according to the NEMA environmental assessment.
Has construction started?
No. The project is at the environmental impact assessment stage.
Updated October 31, 2026.
Prefer WhatsApp? Follow Business Radar on WhatsApp
Weekly, free. We only use your email for this newsletter and you can unsubscribe in one click. Privacy policy.
