From State-Led Industrialization to Structural Decline: A History of Mumias Sugar Company and Its Socio-Economic Transformation in Western Kenya, 1964–2022

Abstract

This article looks at the socio-economic transformation and the historical evolution of the Mumias Sugar Company in Western Kenya in the period 1964 to 2022. From the colonial era of Agricultural Restructuring to the post-independence era of Development Planning to the formation of the company, its growth, industrialization, liberalization, demise and social-economic consequences, the study maps the company's journey. The study aimed at tracing the history of Mumias Sugar Company and studying its Political and Socio-economic transformation in Western Kenya. Historical research design was used, utilizing evidence from archives, oral interviews, focused group discussions and secondary sources. The results prove that the formation of Mumias Sugar Company was a product of Cold war Politics, post-Independence state-led industrialization and international development negotiations. During the 1971-2000 period, the firm has been responsible for changing the lives of rural people, with its outgrower farming, industrial employment, infrastructure and commercial activities. Yet, the liberalization of the sugar market, the introduction of private sector participation, the issues of governance, of financial mismanagement, of falling cane supply, and competition from imported sugar led to its structural deterioration. Company shutdowns led to widespread joblessness, falling incomes, business closures and livelihood diversification by 2018. The findings of the study indicate that the story of Mumias Sugar Company is a history of great achievements and paradoxes of post-independence industrialization in Kenya. It suggests better governance, sharing by farmers, diversification of industry and support to strategic agro-industries by the state of sustainable way.