Deal #3774

Location #1

Spatial accuracy level
Administrative region
Location
Kwale, Kenya

Target country
Kenya
Comment on location
80 km south of Mombasa

Land area

Intended size (in ha)
6000.0
Size under contract (leased or purchased area, in ha)
[2007] 6000
Size in operation (production, in ha)
[2018] 4791
[2015] 3710
Comment on land area
Another source states that the land area is 6879 hectares. 5500ha will be under cultivation. Planned to develop 4200ha under irrigation.

Intention of investment

Intention of the investment
Biofuels, Food crops, Renewable Energy

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2007] Concluded (Contract signed)

Implementation status

Implementation status
[2013] Startup phase (no production)
[2015] In operation (production)
Comment on implementation status
Much work has already been done for cane plantation with the clearing of some 4,000 of the 5,500 hectares of the nucleus estate. A nursery to produce clean seed was established over some 400 hectares. Full production reached in 2016. Production fell in 2017 due to drought. Outgrowers protested over alleged closure of mill- company reassures that the factory is not closing.

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
Not on leased / purchased area (out-grower)
Yes
Comment on contract farming
The remainder of the land was to be allocated to the previous squatters who would then be outgrowers to the new project. The outgrower scheme will initially incorporate 1,200 registered out growers set to produce sugarcane on 4,200 hectares of land.

Number of total jobs created

Jobs created (total)
Yes
Current number of jobs (total)
[2011] 650

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
[2011] 650
Comment on jobs created (domestic)
The project has created over 650 jobs and 99% of the workforce is from Msambweni District.

Operating company

Name of investment project
Kiscol joint venture
Comment on investment chain
In 2016- KISCOL secured the support of a consortium of eight Kenyan and Mauritian banks who lent USD 140 Million to the project. A 12-year management contract was signed in December 2010 between Omnicane and KISCOL.

 

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Data source #1

Data source type
Company sources
File
Comment on data source
Kwale website

Data source #2

Data source type
Company sources
File
Comment on data source
Omnicane website

Data source #3

Data source type
Media report
File
Date
2013-03-17
Comment on data source
Business daily- Omnicane gets option to raise stake in Kwale sugar

Data source #4

Data source type
Research Paper / Policy Report
File
Comment on data source
LAND GRABBING FOR BIOFUELS MUST STOP: February 2013 EU biofuel policies are displacing communities and starving the planet

Data source #5

Data source type
Media report
File
Date
2013-10-31
Comment on data source
World Finance- Kwale and Omnicane: A sweet $200m partnership

Data source #6

Data source type
Company sources
File
Comment on data source
Pabari Investments Ltd website

Data source #7

Data source type
Media report
File
Date
2015-02-12
Comment on data source
CNBC Africa- Mauritius’s Omnicane focused on Kenya expansion

Data source #8

Data source type
Media report
File
Date
2016-04-11
Comment on data source
Business Daily- Mauritian firm freezes plans to add stake in Kwale sugar miller

Data source #9

Data source type
Company sources
File
Comment on data source
Omnicane Integrated Report 2015.

Data source #10

Data source type
Company sources
File
Comment on data source
Omnicane 2016 annual report

Data source #11

Data source type
Research Paper / Policy Report
File
Comment on data source
TURN-AROUND STRATEGY BY KWALE INTERNATIONAL SUGAR COMPANY LIMITED BY JOSEPH OGWOBO WANDERA

Data source #12

Data source type
Media report
Publication title
Kwale sugar factory will not be closed, State assures farmers THURSDAY AUGUST 9 2018 Kwale International Sugar Company Kwale International Sugar Company Ltd. The successfully fended off a raid by a multi-agency task force charged with cracking down on illicit sugar. PHOTO | FILE | NATION MEDIA GROUP In Summary Mr Musiambo said the government has not closed down the firm and has no intention of doing so. On Monday, some sugarcane growers protested over the alleged closure of the factory. Kiscol, which started its operations in 2014, is backed by Mauritian giant, Omnicane. ADVERTISEMENT By LUCAS BARASA More by this Author The government has refuted reports that Kwale International Sugar Company Ltd (Kiscol) had been closed down. Deputy Head of Public Service Wanyama Musiambo said contrary to some media reports, the government has not closed down the firm and has no intention of doing so. The firm’s management, he said, has confirmed that the factory is only undergoing routine maintenance. “The correct position is that, as part of the ongoing crackdown on illicit, counterfeit and unfit for human consumption products, sugar was seized in the company’s godown, where chemical had also been stored. “Samples from the seized sugar were taken by the Kenya Bureau of Standards for requisite testing. Once ready, the results of the tests will be communicated directly to the company,” Mr Musiambo said. DELIVER CANE In a statement, the official said in a meeting with the multi-agency team conducting the crackdown and the company’s directors led by Mr Kaushik Pabari on August 1, it was confirmed the factory was not shut. He assured farmers contracted to supply cane to the factory that it is still open and that they should continue delivering the produce. On Monday, some sugarcane growers protested over the alleged closure of the factory saying it would occasion them huge losses. Kiscol, which started its operations in 2014, is backed by Mauritian giant, Omnicane. It was built on the grounds of the collapsed Ramisi Sugar Factory at a cost of Sh17.8 billion. It has the capacity to crush over 3,000 tonnes of cane per day. Despite severe drought and a prolonged electioneering period that affected businesses last year, the Kwale-based firm realised a profit of Sh75 million for the financial year ended December 2017. In the headlines Ethiopia can't read plane's black boxes BREAKING NEWS Ethiopian Airlines says data boxes may be sent abroad. Trump budget to slash aid to Kenya US President Donald Trump Support for development in Kenya to fall from the USD102 million provided in 2018 to USD43.5 Airlines which fly Boeing 737 Max 8 Sports stakeholders laud Uhuru's order on teams funding Nations, airlines grounding Boeing's 737 MAX Gloves off as Ruto allies hit out at Uhuru - VIDEO Ethiopian crash: Mother recounts pilot's last words - VIDEO Ministry wants to fix all matatu fares Daily Nation NEVER MISS A STORY Get Breaking News Delivered to your Inbox Email SUBSCRIBE LATEST COUNTIES 1 MURANGA Property rows blamed for murders in central 2 BOMET Four die in Bomet road crash 3 MOMBASA Police hunt varsity student gang 4 MOMBASA Ethiopian crash: Mother recounts pilot's last words - VIDEO 5 ELDORET Child specialist killed in Ethiopia crash mourned 6 MANDERA Mandera MCAs root for breastfeeding at work LATEST NTV VIDEOS EAC secretariat sends a team to probe causing tension at Gatuna Border Women’s Volleyball club announces an increase in player’s contracts Vivo Energy partner with Koko for cheaper fuel deal to low-income Nairobians Magical Kenya Open tournament to be held on Wednesday at Karen Country Club CMA recovers Ksh.458M following investigations into suspicious activity LATEST NAIROBI NEWS NEWS Politics Africa World BUSINESS Seeds Of Gold COUNTIES Coast Eastern Mount Kenya Northern North Rift South Rift Nyanza-Kisii Western SPORTS Football Athletics Rugby Golf Others TalkUp BLOGS & OPINION Blogs Commentaries Editorial Cartoons LIFE & STYLE Art & Culture Family Health Showbiz Travel Women & Style Magazines VIDEOS PHOTOS Email SUBSCRIBE Daily Nation Apps Play Store App Store Information Contact Us FAQ E-papers Privacy Policy Terms NMG Sites Lit360 Nation Transitions Nairobi News Business Daily NTV NTV Uganda Daily Monitor The Citizen Mwananchi Mwanaspoti Taifa Leo Swahili Hub The EastAfrican Nation Media Group Follow us Daily Nation X
Date
2018-08-09

Data source #13

Data source type
Media report
File
Publication title
Kwale sugar firm banks on irrigation to shore up yields
Date
2019-08-13

Consultation of local community

Community consultation
Not consulted

How did the community react?

Community reaction
Rejection
Comment on community reaction
They continued to farm the land for another season, with the blessing of the district commissioner. But in 2010, as they prepared to plant, they were met by a police van. The police chief warned them not to come back. The next day, the farmers set out for their fields, but were met by tear gas and rubber bullets. That night, six of them were arrested and charged with trespassing.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
They continued to farm the land for another season, with the blessing of the district commissioner. But in 2010, as they prepared to plant, they were met by a police van. The police chief warned them not to come back. The next day, the farmers set out for their fields, but were met by tear gas and rubber bullets. That night, six of them were arrested and charged with trespassing.

Displacement of people

Displacement of people
Yes

Negative impacts for local communities

Negative impacts for local communities
Displacement

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
No compensation
Received compensation (e.g. for damages or resettlements)
No compensation

Promised benefits for local communities

Promised benefits for local communities
Education
Roads
Other

Materialized benefits for local communities

Materialized benefits for local communities
Education
Roads
Other
Comment on materialized benefits for local communities
Electricity installation in both primary and secondary schools. Rehabilitation of school structures.During the Ramadhan season 2014, KISCOL handed out care packets to residents of Kwale Countly. Grading of roads to allow easy access to villages around the area

Former land owner (not by constitution)

Former land owner
State

Former land use

Former land use
Commercial (large-scale) agriculture
Comment on former land use
Ramisi Sugar Factory collapsed in the late 1980s.

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Sugar Cane

Detailed contract farming crop and animal information

Contract farming crops
Sugar Cane

Use of produce

Has domestic use
Yes
Domestic use
80
Has export
Yes
Export
20
Comment on use of produce
Shipped to international markets

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
Sugar refinery, ethanol production, electricity generation- 80 percent of electricity produced being used by the factory and 20 percent supplied to the National Grid. 3,000 tonnes of cane- per- day will include a 30,000-ethanol production plant. The facility will also host an 18 megawatt power plant run on baggasse, a by-product of cane.

Water extraction envisaged

Water extraction envisaged
Yes
Comment on water extraction envisaged
drip irrigation systems installed by Amiran Kenya, in partnership with Netafim, an Israeli irrigation expert firm.

Source of water extraction

Source of water extraction
Groundwater
Comment on source of water extraction
sub-surface drip irrigation and water management system

How much water is extracted?

Comment on how much water is extracted
Planned to develop 4200ha under irrigation.

Overall comment

Overall comment
A 12-year management contract was signed in December 2010 between Omnicane and KISCOL.

Aug. 20, 2019, 3:47 p.m.

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May 13, 2019, 2:42 p.m.

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March 13, 2019, 12:11 p.m.

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Jan. 16, 2018, 4:29 p.m.

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June 15, 2017, 2:53 p.m.

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Feb. 24, 2015, 9:33 a.m.

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March 12, 2014, 3:31 p.m.

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May 31, 2013, 1:05 p.m.

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