The Privatisation Commission says it does not intend to merge Muhoroni, Miwani and Chemelil sugar factories in the pending privatisation of the sugar millers.
The commission chief executive Solomon Kitungu said the plan is to rationalise the sugar factories and look for one strategic investor to purchase them.
Kitungu said the industry must evolve through rationalisation in response to significant competitive pressures.
He said the factories have faced increased competition from cheap imports from other countries.
Speaking on Monday to farmers’ representatives from Western Kenya in Kisumu, Kitungu said the factories if sold individually will not attract investors.
He further announced that the government has only written off loans that the factories had incurred.
“I want to make it clear that the government only wrote off loans the factories owe other institutions such as the Kenya Sugar Board,” he said.
Kitungu said debts owed to factories by farmers have not been written off.
He announced that the commission will advise the national government to ensure that the debts owed to factories are also paid off to allow for the smooth privatisation in the sector.
The CEO said the government in the past has paid off the debts owed to factories by farmers in other agricultural farming produce.