Kenyan billionaire Jaswant Singh Rai is expanding his sugar business with a Ksh 4.2 billion ($32.3 million) investment in a new processing plant in Nandi County, as his Rai Group conglomerate moves to increase production capacity and secure a larger share of Kenya’s domestic sugar market.

West Kenya Sugar, the group’s sugar manufacturing subsidiary behind the Kabras Sugar brand, plans to establish the mill in Chesumei, with an initial processing capacity of 1,500 tonnes of sugarcane per day. The facility could eventually double its capacity to 3,000 tonnes as operations expand.

The investment will extend the company’s reach beyond its established production centres in western Kenya, opening another processing outlet for farmers in Nandi and neighbouring counties. West Kenya Sugar is working with local growers to develop sugarcane cultivation across more than 30,000 acres, securing raw material for the planned facility.

Rai Group deepens sugar expansion

The Nandi project adds to Rai Group’s growing portfolio of sugar processing assets, which includes the Naitiri and Olepito facilities. The conglomerate has also expanded its industrial footprint through the acquisition and operation of state-owned sugar assets as Kenya seeks private investment to revive struggling producers.

In May 2025, West Kenya Sugar secured a 30-year lease for Nzoia Sugar, covering its processing mill and a 3,600-hectare agricultural estate. The agreement forms part of the government’s programme to transfer selected state-owned sugar factories to private operators capable of financing upgrades and improving production efficiency.

The arrangement included an initial investment commitment of Ksh 5.76 billion ($44.3 million) and a one-time payment of Ksh 208.3 million ($1.6 million), according to the lease terms announced in May 2026. West Kenya Sugar must also pay the government Ksh 4,000 ($30.8) for every tonne of sugar produced and Ksh 3,000 ($23.1) per tonne of molasses.

Combining the Nzoia operation with the proposed Nandi mill would give Rai Group a broader production network and strengthen its access to sugarcane supplies. The expansion also increases the company’s exposure to Kenya’s efforts to reduce reliance on imported sugar through higher domestic processing capacity.

Kenya’s sugar production recovers

Kenya’s sugar industry is recording a recovery, with domestic production rising nearly 22% to 348,143 tonnes between January and May 2026, while sugarcane deliveries to factories increased 25.1% to 3.9 million tonnes, according to the Kenya National Bureau of Statistics.

The government is supporting the recovery through regulatory reforms, private-sector investment and higher import duties. The Sugar Act 2024 reinstated the Kenya Sugar Board, while long-term leases opened state-owned mills to private operators.

Effective July 1, 2026, the Finance Act 2026 raised excise duty on imported sugar to Ksh 40 ($0.31) per kilogram from Ksh 7.5 ($0.05), increasing protection for domestic producers following the reopening of the market to COMESA suppliers in November 2025.

Rai Group broadens industrial footprint

Founded in 1970 by the late Tarlochan Singh Rai, father of Jaswant Singh Rai, Rai Group is a privately held conglomerate headquartered in Eldoret, Kenya. Jaswant Singh Rai, who relocated from India to Kenya in the 1970s, chairs the family-owned group, whose business interests span sugar, timber, paper, cement, edible oils, horticulture and real estate, with investments extending into Uganda, Tanzania and Malawi.

West Kenya Sugar, which operates under the Kabras Sugar brand, was established in 1971 and is based in Kakamega. The company processes more than 5,000 tonnes of sugarcane daily and employs more than 1,000 people, making it one of the significant private operators in Kenya’s sugar manufacturing industry.

The company has also invested more than Ksh 1 billion ($7.7 million) in sugarcane development, supporting farmers across several counties. Its partnerships cover more than 30,000 acres under cultivation, providing a supply network that could support further expansion as Rai Group increases its investment in Kenya’s sugar processing industry.