Agriculture Cabinet Secretary Mutahi Kagwe has announced a comprehensive initiative to revive the Kwale International Sugar Company Limited (KISCOL), a key player in Kenya's Coastal sugar industry facing prolonged operational setbacks.

During a factory inspection on July 30, 2026, CS Kagwe emphasized the government's commitment to restoring the livelihoods of thousands dependent on the sugar value chain in Kwale and surrounding areas.

Stakeholder Committee to Drive Revival

The government has established a revival committee led by the Kenya Sugar Board. This committee will unite national and county governments, investors, farmers, security agencies, and local leaders to address challenges including legal disputes, cane shortages, vandalism, and delayed payments.

Addressing Key Challenges

  • Outstanding farmer payments of Ksh 66 million are set to be cleared promptly to rebuild trust among cane growers.
  • Land disputes involving approximately 15,000 squatters occupying nearly 7,000 acres of factory land are highlighted as a major hurdle, with the Kwale County Government urged to expedite resettlement efforts.
  • Security concerns such as cane field fires and irrigation pipeline vandalism have been condemned for undermining recovery efforts.

Economic Potential of KISCOL

KISCOL possesses modern milling infrastructure, extensive irrigated nucleus estates, and a vast outgrower network. Once fully operational, it can mill thousands of tonnes of sugarcane daily, supporting sectors like transport, mechanical services, irrigation, and manufacturing.

Beyond sugar production, the factory has capacity for value addition through molasses, ethanol production, and electricity co-generation from bagasse, which could significantly stimulate economic activity in Kwale and neighboring counties.

Looking Ahead

CS Kagwe called for collaboration modeled after successful sugar factory turnarounds in Western Kenya, stressing transparency, accountability, and technical soundness in the revival plan. The committee will define clear roles for all stakeholders, ensuring farmers remain central to decision-making.

He noted that previous shutdowns of KISCOL were due to regulatory seizures and land disputes but expressed optimism that coordinated government and community efforts can restore the factory to profitability.