Kenya’s Kisumu county leases US$230,000 rice mill to spur local production

As of December 2021, Kisumu County recorded a harvest of roughly 19,000 metric tons of paddy rice from 6,500 hectares, supporting nearly 12,000 farming households

KENYA -The Kisumu County Government and the National Irrigation Authority (NIA) have officially handed over the newly constructed Ahero Rice Mill to Upland Crop Company, a private investor, under a long-term lease agreement aimed at revitalizing rice processing in Western Kenya.

The move, announced during a ceremonial signing in Nyando sub-county, marks a significant milestone in the region’s agricultural transformation strategy.

The state-of-the-art facility, developed at a cost of KES 30 million (US$ $230,000), will be operated and managed by Upland Crop Company as a private investment. The firm is expected to inject additional capital to ensure the mill’s profitability and long-term sustainability.

This partnership is a bold step toward commercialising rice production in Kisumu and beyond.It will spur job creation, stimulate economic growth, and give farmers better access to markets while promoting value addition,” said Ken Onyango, Kisumu County Executive Committee Member for Agriculture.

Rice is one of Kenya’s key staple foods, with demand growing by 12% annually according to the Kenya National Bureau of Statistics. However, the country imports over 80% of its rice needs, more than 700,000 metric tons annually, primarily from Asia.

The deficit is partly due to limited local processing capacity, especially in high-potential areas like Ahero.

As of December 2021, Kisumu County recorded a harvest of roughly 19,000 metric tons of paddy rice from 6,500 hectares, supporting nearly 12,000 farming households. However, outdated and inefficient milling technology meant much of the rice was sold as unprocessed paddy, fetching lower market prices.

Current one-stage mills cannot meet quality standards. They produce ungraded, poorly destoned rice with excessive breakage,” said Onyango.

He noted that the new facility offers multi-stage processing that sorts, grades, and packages rice to market specifications.

A new chapter for smallholder farmers

The Ahero Rice Mill boasts a daily processing capacity of 60 metric tons, or 2.5 metric tons per hour, significantly expanding opportunities for small and medium-scale farmers. It will serve rice producers from major irrigation schemes such as West Kano, Ahero, and South West Kano.

Jane Achieng’, a rice farmer from Nyando, expressed optimism about the project: “For years, we’ve had to transport our rice to far-off mills, which cuts deeply into our profits. Having a modern facility nearby means better prices, less transport stress, and more motivation to farm.”

Upland Crop Company has pledged to ensure the mill remains operational year-round, offering farmers access to inputs, agronomic services, and training. The company also plans to explore contract farming and out-grower schemes to bolster supply consistency.

According to NIA, the investment aligns with Kenya’s Bottom-Up Economic Transformation Agenda (BETA), which places a strong emphasis on agricultural value chains, food security, and local manufacturing. It also supports the National Rice Development Strategy II (2020–2030), which targets self-sufficiency in rice production by 2030.

We are proud that Kisumu is taking the lead in implementing BETA’s goals at the county level. By supporting farmers and working with the private sector, we can reduce our dependence on imports and create sustainable rural economies,” said Governor Anyang’ Nyong’o.

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