President William Ruto-led Cabinet has approved the programme for the revival and commercialisation of State-owned Sugar Companies.
The sugar companies are, Nzoia, Chemelil, Miwani, Muhoroni, South Nyanza and Mumias.
"Today’s decision sets the Sugar Sub-Sector on a path of renewal by vacating the earlier decision by Cabinet to privatize State-owned entities within the sub-sector," a statement read.
If Parliament approves the proposal by Cabinet the State-owned entities would be operated under a lease and operating framework.
Kenya Federation of Sugarcane Farmers had in July faulted the government over the suspension of sugar milling to allow the cane to mature.
A consultation meeting between Agriculture and Food Authority and sugar millers in Kisumu last Thursday resolved to suspend sugar production for two months effective July 14 to allow sugarcane to regenerate.
The situation on status of cane maturity will be reviewed after two months with a view to resuming operations at the earliest possible opportunity.
The sugarcane shortage has forced most millers to scale down production while others like Mumias Sugar Company (receivership), halted operations two months ago.
West Kenya Sugar Company announced the closure of the milling plant on Friday while Butali Sugar Mills stopped milling on Monday.
