A consortium of European and Asian investors is planning to construct a new Sh1.5 billion sugar factory in Rangwe, Homa Bay County, Kenya. This project, the Muwariziki Sugar Factory, will be located in the Genga area of Rangwe sub-county, approximately 35 kilometers from the existing Ndhiwa Sugar Factory. This investment adds to a growing number of greenfield sugar projects in Kenya, aiming to address the country’s persistent sugar deficit.
The Muwariziki Sugar Factory represents a significant investment in the local economy and is expected to create jobs and boost agricultural activity in the region. The project comes at a time when Kenya’s sugar industry is undergoing a period of expansion, driven by increasing demand for the sweetener and government efforts to reduce reliance on imports. The new factory will contribute to increased domestic sugar production, potentially lowering consumer prices and improving the country’s trade balance.
While details about the specific investors involved have not been publicly disclosed, the project’s scale suggests a substantial commitment to the Kenyan sugar sector. The location in Rangwe sub-county, near existing sugar cane growing areas, is likely intended to leverage existing agricultural infrastructure and supply chains. The proximity to the Ndhiwa Sugar Factory may also create opportunities for collaboration or competition within the local sugar industry.
The development of the Muwariziki Sugar Factory is part of a broader trend of new sugar projects in Kenya, as investors seek to capitalize on the growing demand for sugar. These projects are crucial for modernizing the country’s sugar production capacity and improving efficiency in the sector. However, challenges remain, including access to financing, land availability, and the need for sustainable sugar cane farming practices. The success of the Muwariziki Sugar Factory and other similar projects will depend on addressing these challenges and creating a stable and supportive environment for investment in the sugar industry.