Kinyara Sugar Works Limited

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Kinyara Sugar Works
Industry Manufacture & Marketing of Sugar
Founded 1969
Headquarters Kinyara, Masindi, Uganda
Products Sugar
Website Homepage

Kinyara Sugar Works, whose complete name is Kinyara Sugar Works Limited (KSWL), is a sugar manufacturer in Uganda.[1]


The main factories of the company are located in the town of Kinyara in Masindi District in the Western Region. Kinyara is approximately 20 kilometres (12 mi), by road, west of Masindi, the nearest large town and the location of the district headquarters.[2] This location is approximately 208 kilometres (129 mi), by road, north-west of Kampala, the capital and largest city of Uganda.[3] The coordinates of the company factory are 1°38'14.0"N, 31°36'30.0"E (Latitude:1.637222; Longitude:31.608333).[4]


KSWL is the second-largest manufacturer of sugar in Uganda, producing an estimated 110,000 metric tonnes annually, accounting for approximately 31 percent of national output.[citation needed] According to a 2011 published report, the estimated 350,000 metric tonnes of sugar produced by the four leading sugar manufacturers in Uganda are marketed to the eastern African countries of Burundi, the Democratic Republic of the Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda.[5]


In 1955, the Omukama of Bunyoro Kitara Kingdom Tito Owinyi was given land by the Bunyoro Native Government. He opened a Jaggery factory in Kinyara, where the current factory is located. Owinyi began production of jaggery in 1959, selling it to the Lango, Acholi and West Nile districts. The whole of northern Uganda relied on this product from Kinyara for their alcohol brewing and the sweetening of other products. In the late 1960s, the government of Uganda asked the Omukama of Bunyoro to partner with him and the Kingdom of Bunyoro. He convinced the Orukurato (Parliament) of Bunyoro Kitara Kingdom to allow the government to expand the factory and the plantation. The central government and Bunyoro Kingdom agreed and a memorandum of understanding was signed between the central government and Bunyoro Kitara Kingdom, requiring the central government to pay 30 percent to Bunyoro Kingdom and the Omukama of Bunyoro. This relationship continued until 1966 when the kingdom was abolished, but the factory continued to run. During the political and economic turmoil in Uganda in the 1970s and 1980s, Kinyara was adversely affected and production of sugar ceased. In the 1990s, KSWL was rehabilitated by Booker Tate Limited with aid and loan agreements for various funders underwritten by the Ugandan government. Sugar production resumed in 1995.

Following the resumption and stabilisation of sugar production, the government sold 51 percent shareholding in Kinyara Sugar Works Limited to the Rai Group, a Mauritius-based investment group. KSWL has recovered and the Ugandan government is planning to divest the remaining 49 percent it owns in the enterprise, by floating its shares in an IPO on the Uganda Securities Exchange.[6][7]

In September 2011, the Uganda government sold a further 19 percent shareholding in KSWL to the Rai Group for US$9.1 million in cash. The sales agreement called for the Rai Group to float this shareholding in an IPO on the Uganda Securities Exchange after five years.[8] Previous agreements called for the sale of the remaining 30 percent shareholding to the following entities: 10 percent to the Omukama of Bunyoro, 10 percent to the KSWL outgrowers, and 10 percent to KSWL employees. That process was ongoing as of September 2011.[9]


As of September 2011, the shareholding in KSWL was as follows:[9]

Kinyara Sugar Works Stock Ownership
Rank Name of Owner Percentage Ownership
1 Rai Group of Mauritius 70.00
2 Government of Uganda 30.00
Total 100.00

Production outlook[edit]

In September 2011, the Rai Group, who owned 70 percent of the company shares, signed commitments to invest US$55 million in the factory within three years, increase production to at least 200,000 metric tonnes annually within the same time period, and use the baggase to generate 35 megawatts of electricity, of which 22 megawatts were be sold to the national grid.[8]


KSWL is the sole owner of the Kinyara Power Station, a 14.5 megawatt bagasse-fired thermal electrical plant that, as of July 2013, was in the process of expanding power production capacity to 40 megawatts by 2015.[10]

See also[edit]


  1. ^ Francis Mugerwa, and George Muzoora (17 February 2014). "Fire Razes 600 Hectares of Kinyara Sugar Canes". Daily Monitor (Kampala). Retrieved 11 January 2015. 
  2. ^ "Road Distance Between Kinyara Sugar Factory And Masindi With Map". Retrieved 11 January 2015. 
  3. ^ "Interactive Map Showing Kinyara And Kampala With Route". Retrieved 11 January 2015. 
  4. ^ Google. "Location of Kinyara Sugar Factory At Google Maps". Google Maps. Retrieved 12 January 2015. 
  5. ^ Ojambo, Fred (5 April 2011). "Ugandan Sugar Producers Plan to Invest $197 Million to Expand, Diversify". Bloomberg News. Retrieved 12 January 2015. 
  6. ^ Administrator (22 November 2010). "Uganda Government To Sell Its Shares In Kinyara Sugar Works". WeInformers.Net. Retrieved 12 January 2015. [dead link]
  7. ^ Newvision Archive (13 April 2010). "Government To Sell Kinyara Shares Next Year". New Vision. Kampala. Archived from the original on 17 April 2010. Retrieved 12 January 2015. 
  8. ^ a b Biryabarema, Elias (29 September 2011). "Uganda govt sells a 19 pct stake in sugar producer". Reuters. Retrieved 12 January 2015. 
  9. ^ a b Naturinda, Sheila (29 September 2011). "Government Sells Stake In Kinyara Sugar Works". Daily Monitor (Kampala). Retrieved 12 January 2015. 
  10. ^ Walubiri, Moses (17 July 2013). "MPs considering sh140b energy sector loans". New Vision (Kampala). Retrieved 12 January 2015. 

External links[edit]

Coordinates: 01°38′14″N 31°36′30″E / 1.63722°N 31.60833°E / 1.63722; 31.60833