Inside Rai Group’s Plan to Grow Kenya’s Sugar Industry Through New KSh 4.2b Factory

West Kenya Sugar, a company under tycoon Jaswant Rai’s business empire, has announced plans to establish a new sugar factory in Nandi County in an investment estimated at KSh 4.2 billion. The proposed plant will be located in Chesumei Sub-county and is expected to strengthen the group’s presence in Kenya’s sugar industry.

The factory is designed to process 1,500 tonnes of sugarcane daily, adding significant capacity to the company’s existing milling operations. The investment comes as private players continue to expand their presence in the country’s sugar sector amid efforts to improve local production.

Jaswant Rai, who serves as chairman of Rai Group, has built a substantial business portfolio through investments in different sectors. His interests in sugar manufacturing include West Kenya Sugar, which sells its products under the popular Kabras brand.

The group also has interests in Olepito, Sukari and Naitiri sugar factories, giving it a considerable presence in Kenya’s milling industry. Combined, its facilities account for approximately half of the country’s private sugar milling capacity, according to industry reports.

The proposed Nandi factory will further increase the group’s processing capacity and extend its operations into another sugarcane-growing region. It also reflects the company’s continued interest in investing in agricultural processing as demand for locally produced sugar remains an important issue.

The development comes at a time when the government is pursuing reforms aimed at reviving struggling state-owned sugar factories. Under the programme, several government-owned mills are being leased to private investors expected to inject capital, improve operations and increase production.

The arrangement is part of wider efforts to reduce reliance on imported sugar and strengthen the local industry. Kenya’s sugar sector has faced challenges involving production costs, factory efficiency and inadequate cane supply, affecting the performance of several mills.

Rai Group’s latest investment adds to the growing role of private companies in shaping the industry’s future. Once completed, the Nandi plant is expected to provide additional milling capacity and create opportunities for farmers supplying sugarcane in the surrounding areas.

LINK: https://www.tuko.co.ke/business-economy/industry/645125-how-rai-group-expanding-sugar-business-a-ksh-42b-nandi-factory/?fbclid=IwZXh0bgNhZW0CMTEAcGRvZgRzcnRjBmFwcF9pZA80MDk5NjI2MjMwODU2MDkAAR-vsg-o7_XRay7UjGOC5pu–s8menkT0t2afwp0vAe3FVpS0Pwtje4pKTV6-g_aem_VBJT8zyhFn2GmXaBwiH0RA

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