Kipenzi Sugar Plans Sh1.45 Billion Factory in Siaya to Boost Sugar Production
Kipenzi Sugar Limited plans to invest Sh1.45 billion in the construction of a sugar factory in Mur Malanga, Siaya County, in a move expected to increase local sugar production, create jobs and provide a ready market for sugarcane farmers.
According to an Environmental Impact Assessment (EIA) report submitted to the National Environment Management Authority (NEMA), the company has acquired 17 hectares of land for the proposed integrated sugar, distillery and cogeneration power project.
Once operational, the factory will produce brown sugar and mill white sugar, while bagasse and molasses will be processed as key by-products. Other by-products will include filter mud and boiler ash.
“The project will generate income from the purchase and milling of cane from outgrowers to produce brown and mill white sugar, and molasses,” the company said in the report.
Kipenzi Sugar said sugarcane will be the primary raw material for the factory. The plant will draw a minimum of 30 cubic metres of water per hour from River Yala, with all the water being treated at an on-site treatment facility before use.
“It will utilize a minimum of 30 cubic metres of water per hour from River Yala, which it will pump and treat in its own water treatment plant,” the report states.
The company said it selected the Mur Malanga site because of its favourable conditions for sugarcane farming, including fertile soils, reliable rainfall, established cane plantations and good road connectivity.
According to the report, the region has sufficient sugarcane production to support the proposed factory without interfering with the supply areas of existing sugar millers.
“It has a huge potential for sugarcane growing, with the majority of the farmers being maize and sugarcane growers with surplus cane in their fields,” the report says.
“The site is sufficiently distant from other factories to avoid encroachment in catchment areas. The cane potential and existing cane in this area is adequate for sustained cane supply for the proposed factory.”
The company said the project is expected to create a stable market for sugarcane growers in Siaya and neighbouring counties while promoting value addition and supporting the growth of Kenya’s sugar industry.