Busia Sugar Industries could be in the final stage of getting a processing licence for a Sh1.3 billion plant after the regulator asked for public views.
The call comes after many years of court cases. If licensed, the move will open a battle for the related raw material where three millers already exist. It would be a blow to West Kenya Sugar Company, which has been opposed to the licensing of another miller in Busia.
The Sugar Directorate, through a gazette notice dated March 9, is calling for objections from people opposed to the establishment of this new factory.
“Any objections to the processed grant of licence with respect to the applicant should be lodged in writing with the Agriculture and Food Authority within 14 days from date of this notice,” reads the notice.
Busia Industries has over the past five years been fighting to get a milling licence but its efforts were crippled by numerous court cases with existing millers wanting to protect their territory.
In 2015, the National Environment Tribunal (NET) temporarily stopped its factory construction pending the determination of an appeal lodged by a lobby.
Busia Care Group argued the licence contravened the law as the factory would be set up on the banks of River Sio, which supplies water to Busia Town and its environs.
Busia Industries, however, maintained they followed the right procedure in getting the licence and added they had already invested more than Sh500 million in the project.
If licensed, Africa Polysac who is the investor behind the firm, will join Mumias, Nzoia, West Kenya and Butali sugar companies in the fight for the Western region’s market.
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