Hope for Coast cane farmers as sugar miller roars back to life

Kwale International Sugar Company Ltd, February 7, 2019. [File, Standard]

Kwale International Sugar Company Limited (KISCOL) has started large-scale replanting of sugarcane, following a landmark court ruling that allowed the company to reclaim parts of its nucleus estate from squatters to resume sugarcane production.

The revival of the miller that has for years been bogged down by land disputes and prolonged legal battles marks a turning point not only for the company but also for thousands of farmers, job seekers, and businesses across Kwale County.

The High Court also ordered the state to pay the miller Sh24 billion in damages for breaching a 2002 land lease agreement. The state had unilaterally hived off 1000 hectares leased to KISCOL for mining activities, compromising the sugarcane factory operations.

Justice Florence Wangari reprimanded the state for failing to guarantee the miller a quiet and peaceful possession of a 15,000-acre land lease, which has been occupied by squatters. 

The revival positions the Coast as the country's next frontier for commercial sugar production. While sugarcane grown in Western Kenya typically takes between 16 and 18 months to mature, favourable climatic conditions in Kwale allow harvesting in about 12 months. 

The revival also comes at a critical time for Kenya, which continues to grapple with a sugar deficit that has forced it to rely heavily on imports. The country imported about 600,000 metric tonnes of sugar in 2025, following a 25 per cent drop in local production.

“We hope this time things will run smoothly so that the factory roars back to life without any hurdles. We suffered when the project ran into trouble," said a local farmer, Mr Ali Sanzua, adding that the factory will boost the economy within Msambweni subcounty. 

Experts say the court decision restored investor confidence and allowed the company to restart its long-term development plans. 

"The court ruling gave Kiscol confidence to resume planting and focus on its core mandate of producing sugar while creating sustainable livelihoods for surrounding communities. Its immediate priority is re-establishing the nucleus estate and expanding partnerships with outgrower farmers who will be central to the success of this project," said an agricultural economist, Dr Peter Wambugu. 

Before operations were interrupted, Kiscol directly employed about 1,000 workers and partnered with more than 1,100 outgrower farmers cultivating approximately 4,200 hectares of sugarcane. 

During its first three years of commercial production, the factory received more than 600,000 tonnes of cane, nearly 200,000 tonnes of which were supplied by outgrowers, underscoring the crucial role of smallholder farmers in sustaining the mill. 

Kiscol's integrated complex includes a sugar factory with an initial crushing capacity of 3,300 tonnes of cane per day, expandable to 5,000 tonnes. 

It also features an 18-megawatt bagasse-powered cogeneration plant capable of producing renewable electricity from sugar processing waste, making it one of the country's most modern agro-industrial investments. 

The company's ambitions extend beyond sugar manufacturing. 

"Kiscol planned to build an integrated agribusiness that will support farmers with quality seed cane, agronomic advice, mechanisation services and a reliable market. Its vision, as I understood it, is to create a sustainable sugar ecosystem that benefits investors, farmers and the wider Kwale economy," said Wambugu. Industry stakeholders say the long-term success of Kiscol will depend on building a strong network of outgrower farmers across Kwale and neighbouring counties. 

"A strong network of farmers is the backbone of every successful sugar industry because it ensures a consistent cane supply while spreading the economic benefits of the factory across entire communities," said Wambugu. 

For many residents, the company's revival represents a long-awaited opportunity to participate in a major commercial agricultural venture. 

"For many years, we watched this investment remain idle because of disputes. Now we finally have hope that our land can generate better income through sugarcane farming. If the company provides extension services and honours payment schedules, many farmers will willingly grow cane because we now have a ready market close to home," said Ms Asha Mwakio, a farmer preparing to join the out-grower programme. 

Beyond agriculture, the revival is anticipated to generate thousands of direct and indirect jobs throughout the sugar value chain, extending beyond agriculture. To create thousands of direct and indirect jobs throughout the sugar value chain. 

Employment opportunities are anticipated in cane transport, factory operations, agricultural mechanisation, equipment maintenance, input supply, and extension services. 

Increased economic activity is also expected to stimulate growth among local contractors, retailers, and transporters while broadening Kwale County's revenue base. 

Dr Collins Katana, an agronomist based in Kwale, believes the Kiscol project reflects a broader transformation taking place in Kenya's sugar industry as investors increasingly shift towards regions better suited to climate-resilient commercial agriculture. 

"The future expansion of Kenya's sugar industry lies in areas with reliable climatic conditions, efficient irrigation potential, and shorter crop cycles. Kwale possesses all these advantages. Once anchored by a modern processor and supported by organised outgrowers, the county can become one of Kenya's most competitive sugar-producing regions," he said. 

Katana added that Kiscol also demonstrates the importance of secure land tenure and a predictable investment environment in attracting large-scale agricultural investment. 

"Large-scale agro-industrial investments require certainty. Investors need assurance that legally acquired land will be protected, while farmers need confidence that processors will remain operational over the long term. The Kiscol experience shows how resolving land disputes can unlock investment, create jobs, and stimulate rural economic growth," he said. 

The project was developed through a partnership between the Pabari Group of Kenya and Omnicane Limited of Mauritius, with financing from KCB Bank, Stanbic Bank, Co-operative Bank, Trade and Development Bank, Mauritius