An investor is set to acquire a 40 percent stake in Angata Sugar, which is developing a milling plant at Moiwi in Trans Mara, Narok County, disclosures show.
Sources familiar with the deal said Savannah Crest (KE) Limited will pay about Sh500 million for the stake in Angata Sugar, and the deal is expected to close by December 2024.
Angata Sugar Mills Limited is currently owned by two different shareholding groups, Firethorn Holding Limited, and iCreate Investment Holding Limited.
The Kenyan Competition Commission has already approved the deal, saying it will not affect competition.
“In exercise of the powers conferred by Section 42(1) of the Competition Act, the Competition Commission of Kenya hereby excludes the proposed subscription of shares up to 40 per cent of the total issued share capital of Angata Sugar Mills Limited by Savannah Crest (KE) Limited from the provisions of Part IV of the Act,” said Director General Adano Roba.
“The transaction meets the minimum exclusion threshold set out in the Competition (General) Rules, 2019.”
Angata Sugar Mills is setting up a Sh4.35 billion ($33.8 million) sugar milling plant in Moiwe, Trans Mara, which is scheduled to start production in September 2025.
The plan showed that the Angata plant and its affiliated factories or facilities would be located on an area of approximately 200 acres.
“The sugar production process involves two distinct operations: processing sugarcane into raw sugar and processing raw sugar into refined sugar,” Angata said in a statement.
Angata is among a group of investors lining up to set up new factories in Kenya amid growing demand for sweeteners.
A review of the investment pipeline showed that more than Sh15 billion of new capital is earmarked for new projects in the struggling sugar industry, as well as expansion of some existing processing plants and sugarcane plantations.
Most of the new sugar mill projects are located in Narok, Nandi and Kericho counties, marking a significant shift from the traditional sugarcane growing areas of western Kenya such as Nyando, Mumias, Migori, Homa Bay and Kakamega.
Transmara is also set to host a Sh1.5 billion sugar factory in the Olumemismis area.
Sugarcane weight at Nzoia Sugar Company weighbridge in Bungoma County
Image source: Isaac Will | Nation Media Group
The plans showed that the Sweet plant would have a grinding capacity of 1,250 tonnes of sugarcane per day (TCD), expandable to 2,500 tonnes per day, with the potential to generate three megawatts of captive power.
In the operational phase of the project, Sweet will produce ground brown sugar using sugarcane residue and molasses as by-products. Other by-products will include filter mud and boiler ash.
Dilapidated and debt-ridden public sugar factories have left Kenya dependent on imports as privately owned mills cannot cope with the growing demand for the commodity.
Kenya has traditionally suffered from an annual deficit of about 200,000 metric tons of sugar over the years, which has since widened due to rising consumer numbers. Kenya relies mainly on imports from the Common Market for Eastern and Southern Africa.