Kisii County will have a new Sugar Factory that will be erected in South Mugirango Sub-county.
Signing the memorandum of understanding with Asiatic Oxygen company an Asian based company on Friday Kisii Governor James Ongwae said that the move will be of great benefits.
"This move will see people get employed in the factory, Kisii will soon take over the sugar industry," said Ongwae.
"The Sugar complex will produce 86,000 Metric tones of Sugar, 7.5 million litres of ethanol and 10 megawatts of power that will be fed into the national grid," he added.
He also said that the factory will be a key employer to residents.
"Once the company starts to operate, it will create 1,000 direct jobs to the county residents and over 2,500 indirect jobs," he said.
"It will ease the problems facing cane farmers including delayed harvesting and high transportation costs among others," said Ongwae.
Chief Finance Officer, Kanoria Group, Viod Vora and Senior Manager at Asiatic Oxygen Ltd, Ram Prasad Mishra represented the Asiatic Company.
Mr Viora said that the Company had specialised mostly on the production of Sugar.
"Our company is specialised in sugar production, we expect to start erecting the factory in July and by 2018 it will be done," he said.