The Siaya County Government has formalized a 10-year lease agreement with Nile Logistics Ltd to operate and modernize the Usonga Siriwo Rice Mill, marking a significant step in strengthening the county’s rice value chain and enhancing local farmer incomes. The agreement includes a performance review after three years, with the continuation of the lease contingent on the investor meeting specified deliverables. To date, the county has invested KSh 71 million into the mill’s infrastructure.
Under the terms of the lease, Nile Logistics Ltd is mandated to upgrade milling machinery, conduct routine maintenance, ensure fair pricing for farmers, establish secure market linkages, and guarantee that at least 60% of the mill’s workforce comes from the local community.
To support this partnership, the Siaya County Department of Agriculture will expand farmer training programs through the Usonga Rice Producers Cooperative Society. The county aims to increase the acreage under rice cultivation to 11,200 acres, leveraging the Lower Nzoia Irrigation Project, and raise yields from the current 2,500 kg per acre to 4,000 kg per acre. Additionally, the county plans to shift from one to two cropping seasons annually to ensure a consistent supply for the mill, which has a processing capacity of 2.5 metric tons per hour.
In exchange, Nile Logistics Ltd will pay an annual lease fee to the county, as outlined in the agreement.
Governor James Orengo highlighted the transformative potential of the project, noting that with full utilization of irrigation resources, Siaya could supply more than 35% of Kenya’s total rice demand, positioning the county as a central player in national food production.
The signing of the lease, initially scheduled for the Siaya Trade and Investment Conference in October but delayed due to the early conclusion of the event, underscores the county’s commitment to public-private partnerships aimed at advancing agro-industrial development and improving livelihoods.
The revitalization of the Siriwo Rice Mill is expected to create employment opportunities, enhance farmer profitability, and reinforce Siaya County’s emerging status as a regional hub for rice processing and agribusiness development.
