Siaya County signs 10-year lease with Nile Logistics to modernise Siriwo Rice Mill
Under the terms of the lease, Nile Logistics is required to build sustainable market linkages for both raw and processed rice and employ at least 60% of its staff from within the local community.
KENYA – The County Government of Siaya has entered into a 10-year lease agreement with Nile Logistics Ltd for the operation and modernisation of the Usonga Siriwo Rice Mill, marking a significant commitment to strengthening the region’s rice value chain.
The agreement sets the stage for a new public-private partnership expected to enhance milling efficiency, expand production, and boost farmer incomes across the Lower Nzoia irrigation belt.
The lease signing was initially scheduled for the Siaya Trade and Investment Conference in October, which ended prematurely.
Under the terms of the lease, Nile Logistics will assume full responsibility for upgrading the mill’s machinery, undertaking routine maintenance and ensuring competitive and fair market prices for paddy delivered by farmers.
The company is also required to build sustainable market linkages for both raw and processed rice and employ at least 60% of its staff from within the local community.
A mandatory performance review will take place after three years, with continuation of the lease based on compliance with the agreed obligations.
Siaya County has already invested about KSh 71 million (approximately USD 492,000) in the mill’s infrastructure.
With the new operator in place, the county expects the facility to undergo further modernisation to unlock its full processing capacity of 2.5 metric tons per hour.
As part of the partnership, the Department of Agriculture will scale up capacity-building for farmers through the Usonga Rice Producers Cooperative Society.
The county aims to expand land under rice production to 11,200 acres, leveraging the Lower Nzoia Irrigation Project, and increase productivity from 2,500 kg to 4,000 kg per acre.
Siaya also plans to introduce two rice cropping seasons per year, up from the current single season, to ensure a steady supply of raw paddy for the mill’s 2.5 metric tons per hour processing capacity.
In return, the investor will remit an annual lease fee to the county as agreed in the contract.
Governor James Orengo noted that with full utilization of Siaya’s irrigation potential, the county can produce over 35% of Kenya’s total rice requirement, positioning Siaya as a major agricultural contributor.
The county’s efforts align with ongoing national developments in rice research.
Recently, KALRO–ICRC Mwea launched four new climate-smart, high-yielding rice varieties KALPAA, KALGOLD, KAL-IMARA and KALFINE, developed through collaborations with international research institutions including IRRI, Nagoya University-Japan and AfricaRice.
The varieties were introduced during a field day attended by farmers and sector stakeholders, offering growers access to better-performing materials that support higher yields and resilience under changing climatic conditions.
Supported by AGRA, the field day brought together farmers and rice stakeholders including MOALD, County government of Kirinyag, MRGM,, Kilimo Trust, agro-chemical companies, among others.
Farmers had the opportunity to compare the new varieties, learn best practices and receive sample seedling packs, strengthening technology adoption and productivity in the region.
Chief Guest Hon. Dr. John Gachara, CECM for Agriculture in Kirinyaga County, emphasized proper chemical use, safe handling, storage and hygiene in rice farming.
He reaffirmed the County Government’s commitment to supporting farmers through seed production, market access and deeper collaboration with KALRO.
He also commended the KALRO team for their continued research efforts aimed at improving rice yields, enhancing farmers incomes and food security in the country.
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