Kenya’s Sugar King Jaswant Rai Tightens Grip with Nzoia Takeover

Kenyan industrialist Jaswant Singh Rai has taken over operations of the state-owned Nzoia Sugar Company, in a move that cements his dominance in the country’s sugar industry and pushes his market control to over 50 percent.

The acquisition gives Rai, who already controls about 45 percent of Kenya’s sugar production, a commanding position in the market, raising fresh concerns over monopolistic practices even as the government seeks to revive struggling millers.

With Nzoia’s vast sugarcane nucleus estate and idle capacity, Rai is expected to ramp up output significantly and improve operational efficiency with the 30 year lease.

Nzoia Sugar, one of the oldest mills in Kenya’s western sugar belt, has faced years of financial distress, mismanagement, and underutilisation.

Rai’s entry is seen as a turning point, with expectations that his experience and capital injection could transform the mill into a profitable operation.

Rai, who owns West Kenya Sugar Company (the maker of Kabras Sugar), Sukari Industries, Olepito Sugar, and the newer Naitiri Sugar, has become synonymous with the sugar trade in Kenya.

The businessman is known for turning around inefficient mills and expanding market reach, often undercutting competitors with lower production costs and better economies of scale.

But Rai’s appetite for sugar has not come without controversy. He was locked in a bruising legal and political battle with his brother Sarbjit Singh Rai over the control of Mumias Sugar, another ailing giant.

Sarbjit, who heads Sarrai Group, won the lease to run Mumias after a protracted court fight that drew in multiple bidders and exposed deep family rifts.

The case highlighted the fierce rivalry within the Rai family, which split the once-unified business empire across East Africa.

Beyond sugar, Jaswant Rai’s interests include timber, edible oils, paper, cement, and real estate, making him one of the most influential businessmen in Kenya.

His growing dominance in sugar, a politically sensitive commodity in Kenya’s food basket, is likely to draw both scrutiny and admiration in equal measure.

With Nzoia now under his control, industry analysts predict that Rai will solidify his status as Kenya’s sugar king—reshaping the sector through consolidation, scale, and sheer economic muscle.

gandae@businessdayafrica.org